4 Charts that Suggest Ethereum has bottomed out

4 Charts that Suggest Ethereum has bottomed out

4 Charts that Suggest Ethereum has bottomed out

Ethereum Usage Update

Transactions Value: YTD

After falling for most of the year, the value of transactions has risen from June 27th.

4 Charts that Suggest Ethereum has bottomed out
Source: Etherscan

Total Value Locked Statistics

TVL also appears to have stabilized over the last 10 days though this has not been a reliable indicator of Ether’s performance.

Source: Defillama

NFT Sales have also flattened after dropping for most of the year

Source: Cryptoslam

Last but not least.

Look at Ether’s prices versus Brent Crude between November 2021 and June 2022

And look at Brent vs Ether in July

Overall, Ethereum appears to have reached the bottom. It could still fall a little but is likely to recover over the next few weeks.

Why is Ethereum recovering?

  • The Ethereum Blockchain offers value to users and businesses and with the launch of the Merge sometime in August, this value will only increase.
  • Some of the tokens (Example Metaverse Tokens) it supports are themselves quite valuable to consumers. Even Meme coins like Shib are doing their best to add value to consumers.
  • So while it is possible that the ‘Crypto Winter’ will devastate many cryptocurrencies just like the ‘Dot Com Bust’, Ethereum along with a few will stand apart.
  • But it is important to realize that this recovery we are talking about is from the bottom which may be somewhere between $500 and $1000.
  • The Ethereum Merge in August will also help ETH gain market share from its leading rivals including Cardano and Solana

Current publicly available forecasts do not suggest Ethereum will go back up to 2021 levels anytime soon. This is primarily due to the following reasons

  • Lower liquidity on account of the Fed reducing the size of its balance sheet
  • Likely failure of some or many Alts in the next 3 months
  • General fear factor amongst those who may have lost significant money in the last few months

Ethereum Price Prediction

Ethereum Price Prediction

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.