Ethereum price prediction today: the bullish case for ETH

Ethereum price has stabilized above the key support level at $3,000 as demand for the coin continues rising. ETH token was trading at $3,260, up sharply from the November low of $2,618. This article explores the bullish case for ETH and why it may jump to a record high soon.

Ethereum price has strong technicals

The first main bullish case for Ether is that it has strong technicals. The daily chart shows that the token has rebounded from the November low of $2,618 to the current $3,260. 

It has already moved above the upper side of the falling wedge pattern, which is one of the most popular bullish reversal patterns in technical analysis.

The token is now attempting to move above the 50-day and 200-day Exponential Moving Averages (EMA). It is also attempting to move above the Supertrend indicator, one of the most accurate indicators in technical analysis.

Therefore, the token will likely continue rising in the coming weeks, with the next key target to watch being the psychological level at $4,000. A move above that level will point to more gains, potentially to the psychological level at $4,950, its highest level on August 24, up by 52% from the current level.

The bullish Ethereum price prediction will become invalid if it tumbles below the November low of $2,620, its lowest level in November. Such a move will confirm that bears have prevailed.

Ethereum is Winnie the layer-1 game 

The other main catalyst for Ethereum price is that the network has largely won the layer-1 industry despite the rising competition from the likes of Plasma, Monad, Midnight, Solana, and BSC.

Third-party data shows that the network has continued to gain market share despite this competition. For example, data compiled by DeFi Llama shows that Ethereum has a total value locked (TVL) of $150 billion in the decentralized finance industry, giving it a market dominance of 77%. 

In contrast, Solana has a TVL of  $20 billion, while BSC and Plasma have $9.5 billion and $5.3 billion, respectively. These numbers mean that the network is firing on all cylinders, a move that will accelerate after the Fusaka upgrade, which was implemented last week. Ethereum has a bridged TVL of over $463 billion, higher than other networks, combined. 

Additionally, the network is a juggernaut in the stablecoin industry, where its market capitalization has jumped to $166 billion, much higher than Tron, which has over $81 billion in stablecoin supply. In contrast, Solana and BSC have $16.50 billion and $14 billion, respectively.

The same is happening in the Real-World Asset (RWA) tokenization industry, where Ethereum holds most of the assets. Data shows that it holds over $12 billion of the $18 billion in the sector. 

Ethereum is benefiting from its history and the fact that the developers have continued to improve its performance over the years, including through its regular upgrades that have made it a faster and less expensive network.

ETH supply in exchanges has tumbled 

More data shows that demand for Ethereum has jumped in the past few months, a trend that will continue. 

Ethereum ETFs have brought in over $12 billion in inflows since their inception. This growth will continue now that BlackRock has applied to a staked ETH ETF, which will allow users to earn a monthly return.

Additionally, the staked market capitalization has jumped to over $116 billion, giving it a staked ratio of 30%. 

Most importantly, Tom Lee’s BitMine Immersion has continued to accumulate Ethereum tokens and now holds 3% of the tokens in circulation. Its goal is to eventually hold about 5% of the tokens, a move that will lead to more demand.

All this is happening at a time when the supply of Ethereum on exchanges has tumbled to the lowest level on record. As such, soaring demand and falling supply is a sign that the token will continue rising.

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