Is Ethereum on the Brink of a Major Price Shift?

a gold ether coin sitting on top of a chess board

Ethereum is the second most popular cryptocurrency in the world. Only Bitcoin has a more significant market capitalization level, showing a sizable engagement level from investors. While not long ago, it was just the few and far between that were aware of the existence of crypto coins, things have changed quite a lot since then, and now, a lot of investors are looking to add Ethereum to their list of holdings as a means of diversifying their portfolio and ensure better revenue levels.

As market speculations surround Ethereum’s potential for a major price shift, stay updated on the latest developments by checking the Ethereum price AUD on this website.

Over the past year, things have been quite tricky as prices plummeted severely, and it took a while for the market to recover. Although prices still aren’t at the level they used to have, traders have begun looking for the best way to buy Ethereum. Many believe now is the best time to purchase extra coins, as the bullish run is expected to raise the values to unseen levels. However, that movement seems to still be in the making, as Ethereum faces considerable resistance to surpass the 2,000 milestone.



Major shift? 

The fact that the market has been experiencing significant resistance hasn’t been lost on investors who noticed that Ethereum faces difficulty climbing over $2k. However, that hasn’t stopped many from predicting that the values will likely rise shortly. On the 21st of June, Ethereum achieved a significant goal, surpassing the 100-day moving average and moving on the uptrend. It reached the 42k milestone, yet the bullish trend wasn’t to last. As selling pressures increased, minor rejections appeared, and prices dropped.

Many investors didn’t necessarily see this as a negative thing, as shifts are still expected to intervene as the marketplace regains its strength. Most traders are confident that these changes won’t affect the price points in the long term, and there’s no reason to worry about the emergence of a new bear trend. Currently, just shy of the $2,000 mark, Ethereum gained a support foothold in the market, preventing further drops. When the coin manages to overcome this resistance, the shift in price range will show what Ethereum’s long-term prospects are and what traders can expect in the future.

4-hour timeframe

There are many ways to analyze changes in price changes across the blockchain. One is the 4-hour chart, which determines shifts in short-term price movements. Yet, despite this, this type of chart can also indicate changes that can impact long-term trends. Since the price is currently dealing with a resistance event, investors could notice a slower tendency in the 4-hour chart.

At the moment, ETH is at a crossroads, between the high point of $2k and the lower, where it can find critical support at $1,850. Many have taken this to mean that the marketplace is currently characterized by consolidation candles and the absence of any strong trends, at least for the time. Therefore, investors must be prepared for anything and continue to observe any changes within the market. It’s the best way to protect their portfolio, keep their assets safe, and ensure they continue to see revenue.

Staking 

Ethereum’s last upgrade, the Shanghai, ushered in a new era for investors. Following the introduction of this update, users were finally able to withdraw their staked coins. In the beginning, most researchers predicted that this would cause chaos across the market, impacting prices and affecting the market. However, this didn’t come to pass, and after a momentary craze around withdrawals, the opposite trend started gaining traction.

Since then, staked Ethereum levels have achieved previously unseen levels. The reasons for this are diverse, but most analysts believe it has a lot to do with the fact that investors choose to stake coins simply because they now have more freedom within the blockchain and, should they wish to withdraw them at some point, they have the option of doing so. Since January 2023, figures show that the amount of staked Ethereum has continued to grow.

At the moment, nearly 40% of the total ETH market share is liquid staking. Depositing coins like this began in 2020 when investors were offered the opportunity to earn passive income in this manner. At the time, cryptocurrencies, including Ethereum, were hitting new milestones on an almost daily basis, constantly reaching new all-time highs, which ultimately led to the best prices the crypto ecosystem has ever seen. However, since then, staking has fallen into obscurity somehow, and it wasn’t routinely discussed. That is, until 2023.

Currently, staked Ethereum is almost 60% compared to its peak, as the market is still rebuilding itself after the crypto winter.

Early investors

The early cryptocurrency investors are the people who put capital towards adding crypto to their list of holdings back when the coins were only worth a few dollars at the most. Since then, through hodling and price fluctuations, the money they invested initially has turned into millions of dollars. One of the most well-known examples is that of Erick Fineman, who invested in Bitcoin when he was just eleven years old, with help from his brother. He put in $1000 that he had borrowed from his grandmother. By the end of 2013, Bitcoin became $1200, and he began seeing returns. In 2015, he earned his first $1 million.

As prices continue to change, many more will likely follow his example in the future. In order to grow your portfolio, you must employ careful hodling practices. Because the market changes quite a lot, it’s easy to fall prey to price shifts and changes and want to perform different changes on your portfolio. But cryptocurrency is renowned for its ability to create value in the long term, and it would be a pity not to capitalize on this feature.

The bottom line 

The cryptocurrency market continues to change and evolve, and investors must know this. A solid strategy ensuring revenue is crucial, and it must be tweaked and adjusted as the prices change. Keeping an eye out on how values fluctuate, as well as the world events that might have an impact on the market, can offer a clear indication of how you should move going forward.

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