ethereum prices fell again after recording a drop of more than 11% in the last week. The network also faces inflationary pressuresas eth supply has returned to pre-upgrade levels “The fusion” (happened in September 202), due to low demand.
In this context, however, Ether bulls remain optimistic and confident which this year will mark a new all-time high for the asset.
In a post on x on January 12, cryptocurrency trader Mr. crypto He said he is accumulating eth because he believes it is “about to take off.” The analyst posted a chart from the previous year, with strikingly similar patterns preceding it. a big upward movement.
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Deflationary supply nearing completion
The popular cryptocurrency commentator. crypto₿IRB posted a similar chart asking his 698,000 x followers: “Would you be surprised if eth hits $20,000 this cycle?”
At the same time also the YouTuber mobile crypto said: “This breakout will teleport ethereum to $8,000,” while analyst crypto Caesar He said that now is the time for the eth/btc ratio to recover, renewing his forecast for the alt-season.
Meanwhile, the ratio that measures the price of eth in terms of btc is at its lowest level in the last three years, at 0.034.
Another concern is the return of the network to a inflationary supplywhich is the current situation in April 2024. In the last nine months, the supply of ethereum has increased by 0.35% and currently stands at 120.4 million.
“eth supply will likely reach pre-upgrade supply in the coming weeks,” noted ITC founder Benjamin Cowen. “It is currently increasing by around 45,000 eth per month, but the supply is only 32,000 eth from what it was before The Merge. However, up to this point, demand has remained so low that the supply of eth has been inflationary for approximately the last 10 months.”
The narrative at the time of The Merge, in late 2022, was that the burning of commissions of ethereum via EIP-1559 would have exceeded production, and this was true until April 2024, when supply had decreased by almost 0.4%.
eth Price Outlook: A Crucial Moment
ethereum showed some stability over the weekend, but fell early on Monday, January 13, along with the rest of the cryptocurrency market, sliding. less than $3,200. This decrease highlighted a downward trend which is worrying investors given that the price of eth has fallen almost 15% from its yearly high of over $3,700 about a week ago.
Since then, ethereum appears to have gained steam a consolidation phaseremaining at current levels for five consecutive days. This period indicates a phase of uncertainty, in which the market is trying to find a balance between bullish and bearish movements.
However, if eth fails to maintain these support levels, it could be vulnerable to a further decline, with the risk of fall below the psychological threshold of $3,000paving the way for a possible broader price collapse.
Analysts note that ethereum's ability to consolidate in this range will be crucial in determining its future direction. If eth demand does not increase and selling pressure persists, the risk of a significant drop is real.
However, if support at these levels holds, the cryptocurrency could have a chance to catch up on and start a new upward cycle. The key for investors will be to closely monitor the evolution of this consolidation phase, as any decisive move above $3,200 could signal a recovery, while a drop below $3,000 could lead to a further deterioration in sentiment. of the market.
Meme Index pre-sale exceeds $2 million
Lately everyone wants to get their hands on the new meme coins, as evidenced by the explosive growth of the market during 2024.
meme index is a decentralized platform that aims to simplify investing in meme coins with a structured and community-governed approach. the pre-sale of $MEMEX – your native ERC-20 token – has just crossed the threshold of 2 million dollars and offers exclusive access to four investment baskets designed by the development team. Let's see them in detail.
The first is the Titan Indexdesigned for investors who prioritize stability and includes “heavyweights” such as Dogecoin and Shiba Inu. The meme coins on this list have already seen great success and have large communities. The Titan Index can be described as a high-quality meme coin portfolio.
Then there is the Moonshot Indexfor those seeking potential profitability with moderate risk. It focuses on emerging tokens that could soon explode. With the Mid Cap Indexthe risk increases further and then reaches Frenzy Indexrich in speculative tokens with the potential to explode (or collapse), designed for adrenaline lovers.
In essence, the various Meme Indices offer diversified exposure to the meme coin market and require investors to define their risk and return appetite, to select the index that aligns with their strategy.
The $MEMEX token powers the Meme Index ecosystem, granting access to different baskets and unlocking benefits such as passive rewards and governance rights. In fact, holders have a direct say in how the project will evolve over time, including which tokens will be inserted week after week.
