Ethereum Supporter Confident About ETH’s Prospects
On November 15, @sassal0x, a vocal Ethereum supporter who claims to be an independent educator and angel investor, expressed confidence in Ethereum’s prospects. According to the researcher, Ethereum’s solid fundamentals make it a superior option for long-term value accrual compared to other crypto assets, including Bitcoin (BTC) and decentralized finance (DeFi) projects like Uniswap and Aave. The researcher’s assessment is based on a tweet that can be found here.
Ethereum Bulls Capped Below $2,100
Ethereum, the second most valuable cryptocurrency by market cap, is currently trading above the psychological $2,000 level and is in an uptrend. The price of ETH has more than doubled from 2022 lows, which occurred after the collapse of FTX, a defunct crypto exchange. The current trend can be observed in the daily chart of ETHUSDT on Binance, which can be found here.
As of now, the immediate support level for Ethereum is at $2,000, and prices are trending inside the bullish bar of November 9. For the uptrend to continue, there must be a solid close above $2,100 and the November 2023 highs.
Is ETH Ultra Sound Money Yet?
Despite confidence in the crypto and Ethereum communities, ETH bulls have failed to breach the resistance level. However, experts are optimistic, expecting ETH to float higher as sentiment improves. Ethereum supporters claim that ETH is gradually evolving into “ultrasound money.”
Whether ETH has reached “ultrasound money” status as of November 15 remains a matter of debate. However, theoretically, once Ethereum’s burning rate is higher than inflation, the coin will become deflationary, making it more desirable as “scarce money.”
Ethereum implemented EIP-1559 on August 5, 2021, as part of the London hard fork, introducing a burning mechanism that destroys part of gas fees, effectively reducing the circulating supply of ETH. According to UltraSound Money, over 3 million ETH has been burned since the activation of EIP-1559.
Despite the burning of billions of ETH, the coin has not yet become ultrasound money because the annual inflation rate is still higher than the burn rate. However, ETH burning might be accelerated as the market recovers, driving interest in the DeFi and non-fungible token (NFT) sectors. Due to the extended bear market, DeFi activity shrunk as total value locked (TVL), mainly in Ethereum, fell to as low as $20.5 billion in 2023.
Feature image from Canva, chart from TradingView
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