$10 Billion Of Trading Volume Floods Into Ethereum Price Prediction

In the last day, the price of Ethereum increased by 9%, reaching $1,689 as a result of a market-wide surge brought on in part by a short squeeze. At this point, it has gained 7% in a month and 2% in a week, with today's return more than making up for losses from the previous week.

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With a 24-hour trading volume for the token above $10 billion (at last count, over $13 billion), there is more than enough liquidity for future swings in the hours and days ahead. Yet with ETH still one of the most fundamentally sound cryptocurrencies, today's bounce might be the beginning of consistent year-long gains.

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Has ETH already bottomed out as $10 billion in trading volume floods in? Ethereum Price Forecast

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The signs for ETH point to the coin having bottomed out and being in the midst of a powerful rise with enough momentum to go on. Its relative strength indicator (purple), in particular, has increased to 60, indicating increasing purchasing pressure but also the fact that the token isn't yet overbought.

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$1,700 is a crucial resistance level to keep an eye on. Passing this level, which was last firmly violated in August, might indicate a sustained breakthrough for ETH, which is still significantly undervalued.

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Promisingly, as of this writing, ETH's 24-hour volume has increased from less than $5 billion over the weekend to more than $13 billion. It hasn't experienced volume like this since early January, when it quickly increased from $1,400 to $1,550.

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As a result, the market currently has sufficient liquidity and favorable volatility to support further advances over the next several hours and days. Additionally, as we have frequently pointed out, ETH's fundamentals make it one of the best-positioned currencies to benefit from a market-wide rally.

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For instance, the payment giant Visa was reported to be testing USDC stablecoin payments on the Ethereum blockchain last week. This is quite bullish for Ethereum because Visa's participation in the network is expected to help it grow even more and solidify its dominant position.

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Several experts, including Bloomberg's Mike McGlone, have even made the bold prediction that ETH will outperform Bitcoin this year.

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According to other analysts, ETH will rise in the short- to medium-term to a price of around $2,000. There's no telling how far it could go from there, especially if inflation keeps falling and whales keep stockpiling more.

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Several factors support the fundamental suspicion of continued increases this year. The Merge and other recent improvements, such EIP 1559, have most significantly caused ETH to have a propensity to deflate during moments of high activity.

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The removal of the token from exchanges coincides with ETH's newly discovered deflationary characteristics. In reality, according to data gathered by Santiment, the value of ETH held on exchanges has decreased by 37% since the Merge (in September), while the overall supply of ETH has decreased by 30% during that time.

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We can only anticipate that Ethereum will strengthen its position as the largest layer-one network by total value locked in given that the Merge puts Ethereum on the path to higher scalability. It presently makes up 60% of the total TVL of the cryptocurrency ecosystem, and this percentage will probably rise with time.

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In parallel, as the market approaches 2024, the price of ETH will rise as well, possibly surpassing its most recent record high of $4,878.

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High-Probability Replacements for Ethereum

There are currently a number of other high-potential altcoins available on the market in addition to ETH. As a result, we've included them in a list of the top 15 cryptocurrencies for 2023 that our staff at CryptoNews Industry Discussion has evaluated.

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Be sure to check back frequently for fresh additions as the list is updated every week to include new altcoins and ICO projects.

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