Ethereum (ETH) Eyes $3K Mark as Network Activity Surges
Coinspeaker
Ethereum (ETH) Eyes $3K Mark as Network Activity Surges
Things are looking bright for Ether (ETH) at the moment following a resurgence in Ethereum network activity this week. According to the research head of Matrixport Markus Thielen, the weekly revenue recently recorded on the Ethereum network is an indicator of good times to come. Thielen noted in his report:
“Revenues for the Ethereum ecosystem are bottoming out from depressed levels; this could signal a tradeable bottom for ETH.”
Thielen’s take is directly linked to Ethereum’s weekly revenue which has seen a significant rise in the past two weeks. The network’s transaction fees, otherwise known as gas fees, have gone past $30 million for two weeks now, per Token Terminal data. That is the same weekly revenue that hit a yearly low of $12 million back in early October.
Last week alone, the Ethereum blockchain saw $250 billion worth of transactions, its highest in about eight months.
According to Thielen, it would not be out of place to set a $3,000 price target for ETH. He noted that, as long as fees stay above $30 million, technical chart patterns are suggesting a bullish trend.
Thielen’s latest ETH prediction looks to be in direct contrast to his bearish outlook on the altcoin back in September. At the time, he pointed at the decreasing network activity and decreasing revenues. Interestingly, his September outlook was spot on as Ether plunged to a 7-month low in October. Furthermore, its relative value in comparison to Bitcoin (BTC) also fell to a 15-month low.
Presently, however, and just like the general crypto market, Ethereum is now up 15% in a month, trading at $1,878, per CoinMarketCap data.
ETH Now Deflationary?
Blockchain data currently suggests that more ETH was burned than was added to its supply over the past week. That means that ETH may now be deflationary after two months of being inflationary.
If true, then ETH may now be useful for those looking to hold on to the crypto asset as a store of value. That is because its limited supply will most likely translate to an increase in the value of each ETH coin over time.
According to blockchain analytics platform IntoTheBlock, capital rotation from Bitcoin to altcoins was what triggered user activity on Ethereum. And, with the activity picking up pace, it might be safe to say that the crypto market is readying for a bull ride, says IntoTheBlock research head Lucas Outumuro.
“Improving on-chain activity and growing spot-driven inflows point to strong demand driving crypto’s rally,” said he.