On X on November 15, @sassal0x, a strong ethereum supporter who claims to be an independent educator and angel investor, is sure on eth‘s prospects, citing solid fundamentals. In the researcher’s assessment, these factors make the coin a superior option for long-term value accumulation than all other crypto assets, including bitcoin (btc) and decentralized finance (DeFi) projects like Uniswap and Aave.
ethereum Bulls Capped Below $2,100
ethereum is the second most valuable cryptocurrency by market capitalization at spot exchange rates. Changing hands above the psychological $2,000 level, eth is in an uptrend, more than doubling from 2022 lows when prices plunged as market sentiment worsened following the collapse of FTX, the defunct exchange. encryption.
It is unclear if this bullish trend will continue as we move forward. As things stand, the immediate support level sits at $2,000. Meanwhile, prices are trending within the bullish bar on November 9. This bullish engulfing bar with relatively high trading volume anchors the current trend. However, for the uptrend to continue, there must be a solid close above $2,100 and the November 2023 highs for @sassal0x’s outlook to be valid.
Is eth already ultra-sound money?
Despite the confidence in the cryptocurrency and ethereum communities, eth bulls have failed to overcome this resistance level. Still, experts are optimistic and expect eth to rise as sentiment improves. Part of these tailwinds is due to what ethereum supporters claim is the gradual evolution of eth into “ultrasound money.”
It remains a matter of debate whether eth, as of November 15, has achieved “ultrasound money” status. However, in theory, once ethereum‘s burn rate is greater than inflation, the currency will be deflationary. As more users demand that eth pay gas fees when transferring assets or deploying smart contracts, ethereum will burn more coins, making it “scarce money,” which is more desirable.
ethereum implemented EIP-1559 on August 5, 2021, as part of the London hard fork, introducing a burning mechanism that destroys part of the gas fees, effectively removing more eth from the circulating supply. Until now, according to Money UltrasoundMore than 3 million eth have been burned since the activation of EIP-1559.
While billions of eth continue to be withdrawn from circulation, it has not been enough to make the currency ultrasonic because annual inflation is greater than the burn rate.
eth burning could accelerate as the market recovers, generating interest in the DeFi and non-fungible token (nft) sectors. Due to the extended bear market, DeFi activity slowed as total value locked (TVL), primarily on ethereum, ethereum” target=”_blank” rel=”noopener nofollow”>fell up to just $20.5 billion in 2023.
Featured image from Canva, TradingView chart
