After Ethereum hit an all-time high of $4,384 in May the altcoin has already lost more than 40% of its peak value. Ethereum trade price closed at $ 2,569 threshold on June 1st, but what will happen next?
Estonaco Consulting LLC experts consider the current decline resembles what was observed in early 2018 when the altcoin showed a significant price increase after a pullback. Company experts also point out that in March of this year Ethereum also lost a significant part of its value which was followed by a dramatic bounce 45 times skyrocketing the overall market price for a single coin! However, it noticeably lost the momentum in May falling yet again.
Meanwhile, HQ analytics foresees a stable but lengthy journey over a three and a half years that Ethereum will have to make to reach its all-time high once again. More skeptical experts believe that the altcoin is capable of nosediving to a $1,200 mark in the very near future.
From a technological standpoint Ethereum may receive another impetus as early as July 2021. The introduction of the EIP-1559 protocol seems to be a viable candidate to denote this growth. The protocol integration into the operation of this altcoin should contribute to the creation of a more efficient mechanism for generating transaction fees in the blockchain. Meanwhile, the average fee is currently $5.9 compared to the $70 recorded a month earlier.
It is no coincidence that miners’ revenue from Ethereum reached an absolute monthly maximum of $2.25 billion in May raising by 42.4% since April. Worth noting that $1.03 billion is the total amount of fees that were paid for Ethereum transactions.
Additionally, Ethereum staking in anticipation of a major digital asset update called Ethereum 2.0. It creates additional demand for this altcoin. Finally, fresh data from Glassnode indicates that in May there was a 5.75% outflow of Ethereum from private wallets, from 13.9 million to 13.1 million. This could be an indirect signal in favor of a resumption of the Ethereum rally.
Estonaco Consulting LLC suggests taking a closer look at Ethereum as an option for long-term investments as opposed to a highly volatile and less predictable Bitcoin. Feel free to contact us for more detailed information.
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