Polygon (MATIC), an Ethereum Layer-2 solution, has become one of the most talked about projects of recent times. So, is it possible for Ethereum to dwarf its performance and reach $10,000? Ethereum (ETH) price and detailed market data from here you can see.
Is $10k possible for Ethereum?
cryptocoin.comAs you follow, the leading altcoin Ethereum (ETH) has recorded tremendous gains from both its price level and development activity in recent years. However, Polygon (MATIC), which is on Ethereum, has surpassed Ethereum with its performance in the new year. The decentralized nature of the ecosystem has opened years to predictions that part of the market will see Ethereum overthrow the leading crypto Bitcoin (BTC) in the future.
Proponents of the asset, which is also seen as an investment vehicle, have set several growth targets that can be reached as the crypto space matures. Indeed, one of Ethereum’s most watched metrics is price action, which has corrected over the past year in line with the overall crypto market downturn. One of the most watched price positions is $10,000. Crypto analyst Paul L is evaluating whether this is possible.
There is no doubt that Ethereum’s price could touch $10,000. However, the real question is when. It is worth noting that several factors have influenced Ethereum’s past price rallies. In the current situation, the dynamics of the cryptocurrency industry are different from what has been observed during the previous rapid rise of the decentralized finance (DeFi) token.
However, there are necessary conditions for Ethereum to reach the value of $ 10,000. A key factor will be the continued investor confidence in the crypto market, which must be expanded to create a conducive atmosphere for the substantial and sustainable growth of Ethereum. Ethereum rallied in 2023, aiming to exit last year’s bear market. In this case, the market rally is led by assets like Bitcoin. Historically, when Bitcoin has won records, it has tended to attract the rest of the market in the interest of Ethereum.
Will the network development activity have an impact?
On the other hand, continued blockchain upgrades, culminating in Ethereum’s transition to Proof of Stake (PoS), will continue to be influential in the future of the asset. Analysts also state that the impact of the Merge upgrade will be felt in the future, with the asset reducing energy consumption while trying to attract institutional investors.
Based on this aspect, market participants believe that this could be a bullish sentiment for ETH once investors start accessing the Ethereum they stake. Specifically, access to staked ETH is scheduled for the first quarter of 2023 after the Shanghai upgrade goes live.
Regarding network upgrades, the altcoin will also be able to benefit from adjusted sharding to improve scalability and reduce transaction fees. However, delays in the estimated 2023-2024 upgrade could hinder Ethereum’s progress. Timely execution of the upgrade could be an important catalyst for the altcoin.
Compete with MATIC, ADA and SOL
Elsewhere, Ethereum also faces the threat of not being able to fully operate given the number of competitors joining the market. Networks like Cardano (ADA) and Solana (SOL) are also emerging as possible ‘Ethereum killers’. In addition, Polygon (MATIC), a Layer-2 solution, has also gained popularity as a competitor. However, Ethereum occupies a leading position mainly due to the size of the network, as evidenced by its support for active smart contracts, decentralized applications (dApps), decentralized finance (DeFi) protocols, and Non-Fungible Tokens (NFT).
Additionally, investors need to pay attention to the regulatory aspect of how Ethereum might be affected in the future. In line with this, the US regulatory authority SEC has recently launched a crackdown on staking, factors that could affect Ethereum. Overall, the ability to reach $10,000 is supported by a few guesses. For example, text-based artificial intelligence (AI) platform ChatGPT predicts that Ethereum will likely trade between $5,000 and $20,000 by 2030.
Ethereum price analysis
Considering that ETH hit a record high of around $4,800 a year ago, Ethereum still has a few price levels to hit $10,000. Here, $5,000 emerges as a critical resistance position. Meanwhile, the altcoin is struggling to hold above $1,600 as it aims to reclaim $1,800. At press time, ETH was trading at $1,696, up 1.6% on a daily basis.
From a technical analysis perspective, ETH’s one-day indicators on TradingView are giving mixed signals. Summary stands at 8 in neutral position. Moving averages suggest buying at 8. The oscillators are showing the ‘sell’ sign at 2.
Accordingly, the prospects for Ethereum in general, like the rest of the crypto market, remain unclear.
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