Ethereum
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Ethereum broke the $1800 mark for the first time since August 2022. The rise of DeFi and the successful launch of the Shanghai upgrade could see the price of ETH start a bullish rally.
Crypto investors invest in DeFi
The high likelihood of a new banking crisis seems to have seriously scared investors: amid the recent incidents with Silicon Valley Bank and Signature, more than $ 20 billion was withdrawn from traditional financial institutions. Some of these funds migrated to DeFi protocols built on the basis of Ethereum.
This is confirmed by Glassnode’s on-chain data, which shows a surge in the supply of ETH locked on decentralized finance platforms. A large influx of funds occurred on March 13 – a few days after the collapse of Silicon Valley Bank.
Between March 13 and March 20, the supply of Ethereum in smart contracts increased by almost 270,000 coins. This represents 0.22% of the total ETH in circulation, worth about $200 million.
ETH supply locked in smart contracts. Source: glassnode
When the volume of tokens blocked in smart contracts grows, the number of coins available for trading on crypto exchanges becomes smaller. The reduction in selling pressure caused by the recent DeFi boom could also be a catalyst for Ethereum price growth.
The important on-chain metric NVT (Network Cost to Transaction Ratio) also supports the bullish outlook. As of March 19, the NVT ratio was 127.27, which is 40% less than the value of 213.75 recorded on March 5. A decline usually signals an undervalued asset.
NVT coefficient. Source: glassnode
Ethereum (ETH) Price Prediction: $2,000 is just around the corner
The Global In/Out of the Money (GIOM) data from the IntoTheBlock platform gives an idea of the potential bullish price trend for ETH. The metric tracks the distribution of prices among holders based on the volume of tokens held at each address.
In/Out of Money. Source: IntoTheBlock
Ethereum price is likely to face minimal resistance as it approaches the $2,000 zone. In case of fixing above this mark, further growth in the direction of $2,900 is likely. For the bears to take over, the price of ETH needs to fall below $1,600.
Ethereum holders will also be on the lookout for the Shangai update, which is scheduled for April 12th. Some investors expect that a successful launch will trigger a price rally, while others believe that owners of tokens locked in Beacon Chain will rush to get rid of them.
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