Bitcoin bulls are calling $50,000 for the next rally. Ethereum bulls are also just as optimistic, as fundamental indicators are looking as promising as technical indicators. These key signals imply that a bullish rally, despite price stagnation is imminent and includes the sky-high demand for Ethereum’s ETH, which analysts claim will unseat supply in the coming weeks. To get the point across, analysts noted how Bitcoin’s price quadrupled within a three months period (November 2020 to January 2021) when demand toppled supply.
Exchanges will run of $ETH in 10 days at current rate. Reserves dropped 10% in 24 hours. Incredible. We all know what happened when demand outstripped supply of $BTC. It quadrupled in 90 days. Can the world computer top that?
— Alex Saunders#ETH2 #DeFi #NFTs #Gaming #DAO #Scaling pic.twitter.com/QJl3Hucqno
(@AlexSaundersAU) January 14, 2021
In the last 48 hours, Ethereum has sustained losses of 8.5%. The drop in prices was triggered by whale activities, reflected in the exit of ETH worth $2.4 billion from the Bitfinex exchange.
DeFi still remains one of Ethereum’s most promising ventures. At press time, locked in value has hit $23.22 billion. But Ethereum’s DeFi industry is still in its early stages, hence market maturation is still at its beginning state. “The DeFi market is still severely undervalued,” says analyst Joseph Young. Making up a large fraction of the entire digital currency market, he touches on DeFi’s astounding market cap.
“The total market cap of all DeFi tokens (even including Chainlink) is $25.7 billion. XRP and LTC and ADA will result in $31 billion.”
Decentralized futures, still in the early stages but just as bullish is already processing millions of dollars in daily transactions. Young noted this in a preceding tweet as quoted below ;
“Decentralized futures exchanges on Ethereum are also seeing fast growth. Perpetual Protocol, for instance, is processing $50 million PER DAY.”
Meanwhile, on the technical charts, Ethereum seems to be replenishing its 7 days losses with reverse daily gains of 12% at the time of this report. However, the second most valued digital asset may need more to break above the $1,350 resistance level. Within the last few days, it has become evident that the strong price rejection around said resistance is still ongoing.
ETHUSD Chart By TradingView
Ethereum bulls have been knocked back down on several occasions. And the bearish momentum had successfully managed to suppress ETH to a low of $994. At press time price of $1,209, ETH bulls will need to build enough momentum to retest $1,350 resistance or risk testing $880 support levels.
A bullish price reversal is still being anticipated by analysts who opine that LINK, DOT, and ETH will pioneer the altcoin season.
