The digital currency market starts the new crypto year relatively calmly and is slightly negative over the past 24 hours. The Ethereum course has hardly changed and is quoted at $1197 at exactly the same level as a day ago. Traditionally, New Year’s Day is characterized by a low trading volume. With a trading volume of around $2.5 billion, Ethereum moved between $1192 and $1206 last day – little change for the actually so volatile cryptos. Although the recovery potential seems limited in the short term for the first trading days of the year and Ethereum is struggling with the important limit of $1200, the medium-term Ethereum price forecast looks more bullish.
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Here are five reasons why Ethereum could recover again this year – knowing full well that further historical lows could be reached beforehand.
As Ethereum thus consolidates sideways, a promising crypto presale is nearing the sell-off. Those responsible for Dash 2 Trade were able to collect almost $12 million and will soon be launching an innovative platform for curated trading signals and crypto analysis – the native ERC-20 token D2T, which ensures access to the Dash 2 Trade offer, has upside potential , undoubtedly immanent.
1. End of interest rate cycle nearing, macro support in H2 2023
The beginning of the bear market is due to the macro economy. Problems inherent in crypto aggravated the situation. But rampant inflation made the start, as a result of which the central banks around the world raised interest rates – above all the US Federal Reserve, which tightened monetary policy at historically aggressive rates. The rate hike cycle is likely to continue through the first few months of the new year. Nevertheless, the new target level is still expected to be reached in the first half of the year.
An end to interest rate hikes combined with declining inflation would raise hopes that interest rates would fall again in the near future. According to their own statements, the central bankers do not want to start easing monetary policy until 2024. Nevertheless, the macro economy could support the development of risky assets again in the second half of the year.
2. Deflation sets Ethereum apart from competing coins
In times of omnipresent inflation, it seems comparatively refreshing to invest in cryptocurrencies with limited supply or even deflation. Originally, Ethereum was not designed as a cryptocurrency with a limited supply – the issuance of new coins increases the total supply. However, the merge created real deflation, and in 2022 Ethereum had its first deflationary month. With rising gas fees, this deflation could return in 2023, but at least PoS has massive advantages over PoW in this regard that support a recovery.
3. Shanghai upgrade is about to be finalized
With the merge, Proof-of-Stake was introduced to Ethereum. Validators were already able to get involved in staking ETH 2.0 – the number of ETH staked is currently at record levels. However, this is not surprising – because withdrawals are not yet possible to date, so that cumulatively more and more ETH is being lured in order to generate an additional return with staking.
The Shanghai upgrade is now planned for early 2023, which will make it possible to withdraw ether again. A dump should not follow – because the withdrawals are strictly limited and rather negligible in terms of the circulating stock. Rather, the Ethereum upgrade could show that Ethereum staking works and enables passive income. This would tend to have a rather bullish effect on the demand for ETH and thus the price.
Currently, only 14% of $ETH supply is staked. The average staking in PoS networks is 61%.
The biggest catalyst for more staking will be the Shanghai upgrade which will allow people to withdraw their stakes. bullishpic.twitter.com/CTJnb2hobx
— Henrique Centieiro (@henriquecentiei) December 22, 2022
4. Crypto whales are already buying Ethereum
The behavior of the crypto whales, which accumulated more ETH at the end of 2022 in order to take advantage of the cheap prices below $1300 in particular, is already tending to be bullish for a recovery in 2023. Apparently, there is speculation on a medium-term recovery. Smart capital is already flowing into Ethereum – the masses could follow in 2023.
The number of addresses on the Ethereum network that hold at least a fraction of coins and are therefore “non-zero” is even at an all-time high, although the realized capitalization continues to fall.
5. Traditionally cyclical market movements: Bear markets are followed by bull runs
The annual accounts for Ethereum 2022 are negative. On a dollar basis, ether lost around 68% in value. From the all-time high, the correction is even slightly over 75%. Nevertheless, Ethereum holders must not forget that the development of cryptocurrencies has historically been cyclical and volatile. Such price corrections were not uncommon in the bear market. This was followed by a new bull run, which catapulted the established coins to new ATHs.
Ethereum Alternative: Can the Dash 2 Trade Coin explode in January 2023?
In the short term, the D2T coin could enable an outperformance to Ethereum. But the new platform will also remain in place in the medium term Dash 2 Trade exciting, which is explicitly aimed at the needs of private investors. Because in the future you want to offer professional analysis tools and curated trading signals at an affordable price – the D2T Coin offers access via the platform. Especially after the FTX crash or Terra disaster, risks are omnipresent in the digital currency market. The best way to minimize risks remains the in-depth analysis that Dash 2 Trade AI-based and intuitive allows.
The Dash 2 Trade Presale is well underway with nearly $12 million in raising capital. If you still want to accumulate the ERC-20 tokens for $0.0533 before the ICO, you have around five days. The initial listing will then take place on January 11th.
Go to the Dash 2 Trade Presale
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