Ethereum (ETH) Fundamentals Appear Impressive, But Analyst Forecast Pain Ahead

  • It’s been around 100 days since Ethereum’s merge.
  • The blockchain has 491K active validators securing the platform.
  • Analyst forecast another price dip for Ethereum.

Ethereum hasn’t been this better fundamentally. Nonetheless, Ether’s price action is yet to reflect this, and economists forecast more price dips for the leading alternative token in the up-and-coming sessions.

It’s been over three months since the ETH Merge upgrade, and the platform has attained more resilience and is environmentally sustainable. The proof-of-stake (PoS) consensus model replaced proof-of-work mining. That has reduced the platform’s power usage by over 99%.

Ethereum developer superphiz highlighted the narrative on 25 December, tweeting that they did the correct thing by switching the consensus mode. Beaconcha.in data confirmed nearly 15.7 million Ethereum staked – about 13% of the overall supply – valued around $19.2B at today’s price.

Further, the Ethereum network has over 490K active validators. Meanwhile, BTC saw its hash rate tumbling amidst deteriorated weather conditions and worries over power grids in the US. Ethereum does not have these issues.

ETH Tops NFT Activity

There’s more to Ethereum’s bullish fundamentals than staking. First, it remains the world’s leading NFT platform. Nansen data indicates that investors minted and traded $23.7B in NFTs in 2022. Moreover, it’s well ahead of Solana – the 2nd-largest non-fungible token marketplace. Other taunted ETH killers, including Polkadot and Cardano, aren’t even close as far as NFT activity is concerned.

Ultrasound.Money tracker shows ETH’s issuance is nearly zero. The supply grows by only 0.012% yearly and has plummeted marginally from the 121.3K Ether peak. CoinTool XEN is the leading gas guzzler, for now, burning 164 ETH within the previous 24 hours. Anyone can mine XEN, which seems popular despite its pyramid-like tokenomics.

ETH’s Gloomy Price Forecast

The ecosystem’s positive fundamentals are yet to reflect in ETH’s price action. The alt traded flat today, changing hands near $1,220 during this writing. Ethereum didn’t present notable price movements over the weekend, and the alt stayed range-bound at around $1,200.

Nonetheless, analysts forecast more pain, with the alt showing vulnerability to dips. Technical indicators show the alt might break its immediate support soon. Moreover, the prevailing bearish triangles had analysts forecasting price dips to $1,080.