The usage case for the Ethereum blockchain continues, and with that comes expectations for more upside for ether, the second-largest cryptocurrency.
Ether jumped almost 8% for the week ending March 26, and with some analysts forecasting more upside for the digital asset, investors might want to evaluate the Grayscale Ethereum Trust (ETHE). ETHE follows the CoinDesk Ether Price Index.
“The rally in ether prices on Friday came in tandem with similar action in other cryptocurrencies, and it continued its recent trend of outperforming Bitcoin, the leading digital asset,” reports Jack Denton for Barron’s. “This could be only the beginning, according to Katie Stockton, the founder and managing partner of technical research group Fairlead Strategies.”
Ether’s recent move about the important $3,000 barrier could portend more upside for the digital asset and ETHE, and there’s some green space from current levels to the next resistance area around $3,500. Additionally, there’s plenty of room to rally to $4,865, which is ether’s all-time high.
“The breakout reverses the intermediate-term downtrend, and it is associated with positive short-term momentum and a bullish ‘pop’ in the daily stochastics, supporting upside follow-through in the near term,” said Stockton, according to Barron’s.
Ethereum’s recent merge on the Kiln testnet is acting as a catalyst for the cryptocurrency, stoking enthusiasm for the upcoming proof-of-stake switch. Analysts broadly believe that the merge is constructive for ether, as the upgrade could bolster safety and scale.
“The prospect of being able to make a passive return on staked Ether will attract more investors into the space,” according to MacroHive.
An added benefit of the merge is that it’s expected to result in a dramatic reduction in energy consumption by ethereum miners, potentially bolstering the digital currency’s environmental, social, and governance (ESG) credentials in the process.
“The merge will also have a notable impact on the circulating supply of Ether as the net issuance will undergo a significant drop-off once completed as block rewards are replaced with Ether staking yields,” reports Jordan Finneseth for CoinTelegraph.
Adding to the longer-ranging case for ETHE is the point that the ethereum blockchain serves as the foundation for decentralized finance (DeFi) and non-fungible tokens (NFTs), among other emerging digital concepts.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.