- Ethereum price crossed $3,000 as the community prepared for the milestone update, the merge on the ETH mainnet.
- As the proof-of-stake transition draws closer, a total of $5 billion Ethereum tokens have been burned.
- Analysts believe Ethereum is poised for a 20% upswing, following a bounce in the altcoin’s price.
Ethereum price could post 20% gains in the current uptrend. The community is keen on the arrival of the long-awaited upgrade on the Ethereum mainnet. Analysts have noted a bounce in the Ethereum price trend and predicted a bullish outlook on the altcoin’s price.
Also read: Gold Price Forecast: XAUUSD battle for direction continues
Ethereum price ready for 20% upswing ahead of major upgrade
Ethereum price is set up to break out of a long-term bearish trend line, according to crypto analyst Willy Woo. Woo argues that Ethereum price was on a bearish trend for over three and half months, and the altcoin is on track for a trend reversal.
The merge, considered a milestone event on the Ethereum mainnet, is drawing closer after its arrival on the testnet. There is a spike in Ethereum tokens being burned ahead of the upgrade. Over $5 billion in Ether has been pulled out of circulation through the implementation of the burn.
Previously, the EIP-1559 was considered a key upgrade in the Ethereum ecosystem, as it worked towards introducing predictability and stability in transaction fees. Proponents argue the merge could put deflationary pressure on Ethereum.
As burn reduces the overall supply of Ethereum, it could positively influence the price, fueling a rally in the altcoin.
Analysts have evaluated the Ethereum price trend and predicted a trend reversal in the altcoin. Michaël van de Poppe, a crypto analyst and trader, believes that Ethereum price could hit highs at around $3,000.
Good bounce on #Ethereum here, which makes it likely that we're going to take the highs around $3,000.
— Michaël van de Poppe (@CryptoMichNL) March 21, 2022
Question will be how strong we're going to move from there; immediate rejection and we're at the highs of this relief rally.
Crucial support; $2,800. pic.twitter.com/4FqIhNBFJs
FXStreet analysts argue that an Ethereum price close above $3,033 could result in an ideal Ichimoku bullish breakout for the first time since October 2021. Analysts predict a 20% upswing in Ethereum price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.