ETH Price’s Definitive Settlement Above $1,800 Is a Certainty

ETH Price's Definitive Settlement Above $1,800 Is a Certainty


  • Institutional hold on Ethereum has remained steady despite the recent market correction.
  • Ethereum’s hold on DeFi seems secure, despite pressure from some altcoins.
  •  ETH 2.0 could herald a major price upswing.

Ethereum was on an unstable trend in the early hours of trading today, oscillating between $1,758 and $1,784 for much of the time. The cryptocurrency was also down by 1.4% compared to the price set 24 hours earlier. It was a marginal 0.5% below its price a week ago.

Impressive outlook among institutions

In a solid proof of a bullish approach to Ethereum by investors, its volume on exchanges is on a 28-month low. According to data by Santiment, ETH’s circulation in cryptocurrency exchange platforms is currently just below 20%, as a percentage of the total volume in circulation.

There is, therefore, a direct correlation between reduced exchange holdings and the recent price hike. Any reversal in these figures could signal an impending price downturn.

ETH’s price outlook among market analysts has been generally positive, save for concerns around its high gas charges. An analyst at Messari, an online cryptocurrencies database, is convinced that ETH 2.0 could prove the greatest turning point in Ethereum’s price movement.

As the world waits for the release of ETH 2.0,  Ryan Watkins has projected that it is the one thing that will drive Ethereum above Bitcoin sooner than previously thought. Ryan’s positive outlook for Ethereum may be viewed as over-optimistic, but its inherent design could propel it to new highs.

ETH 2.0 is hailed as a deflationary asset, which means that it will make each Ethereum block burn up after a transaction. In essence, this will mean that Ethereum will progressively become scarce, thereby giving it an edge over Bitcoin.

Elsewhere, Ethereum has ventured into new territory, following a partnership between the Associated Press (AP) and Everipedia. The partnership between Everipedia, which operates on the Ethereum ecosystem, and AP will be for the broadcast of a popular college basketball tournament dubbed “March Madness.”

Under the agreement, AP will publish live scores and schedule of games for the tournament, which attracted about 11 million viewers in 2019. On its part, Everipedia will provide its OraQle software to serve as the platform for the broadcast.

Solidifying gains made

In the meantime, Ethereum Decentralized Finance (DeFi) protocols now hold a record 9.2 million Ethers. This is proof that Ethereum is still a preferred destination for DeFi investment, despite recently coming under pressure from Binance Smart Contracts and Polkadot.

As some initial DeFi protocols diversify to other ecosystems, they are keen to retain their presence in Ethereum. Also, new DeFi protocols are joining Ethereum. If this trend continues, then Ethereum is likely to hold on to its status as the number one DeFi ecosystem for a long time.

In another attempt to reduce its prohibitive gas fees, Ethereum developers have proposed a mechanism aimed at enhancing the current transaction batching support system. Dubbed  EIP-3074, the proposal could be included in the forthcoming London Upgrade, scheduled for July.

It is estimated that it will reduce transaction costs by 20%. A decision on whether the proposal will be integrated into the upgrade will be made on Friday.

In a solid proof of favorable institutional view of Ethereum as an investment asset, data from  Santiment shows that the number of wallet addresses with more than 10,000 Ethers has been steady since ETH hit the record-high $2,050 a month ago. The holdings, which are worth about $17.7 million, have declined by a paltry 0.9% despite the recent market consolidation that sent prices downwards.

Technical analysis

ETH price will find the first support at $1,760 and the second one at $1,773. It will meet the first resistance at $1,784, and the second resistance level will be established at $1,810. A break past this point will drive prices to upwards of $1,850. Conversely, a bearish rally at $1,760 could send prices below $1,700.

ETH/USD chart. Technical analysis
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