- Ethereum saw an increase in the number of deposits compared to withdrawals.
- ETH price patterns showed a potential breakout.
Ethereums [ETH] Net flows on derivatives exchanges recently exceeded 50,000 ETH per day, indicating a significant increase in deposits over withdrawals.
This trend has traders speculating about the potential impact on ETH price movements.
A spike in deposits could signal impending selling pressure or an increase in lending to fuel long positions, signaling volatility ahead.
With market participants expecting major price swings, Ethereum’s prospects for the coming months could be a key focus for investors.
Source: CryptoQuant
ETH price and inflation rate
Ethereum’s price action is still in the spotlight. Over the past week, ETH has risen 8.53% and at the time of writing the price was $2605.63.
ETH/USDT is currently in an ascending triangle, and a breakout from this pattern could send the price higher. The next major target for ETH is $2800, which could be surpassed if the bullish momentum continues.
The ETH/BTC pair is trading near a critical support level at $0.039 on the weekly chart. Despite the bearish sentiment in the market, this support level has remained firm, indicating the possibility of a recovery.
Such a recovery could not only benefit ETH but also trigger a broader rally in the top 100 altcoins.
Source: TradingView
Inflation remains a crucial factor in Ethereum’s overall market performance. Currently, Ethereum’s inflation rate is +0.31% per year, a figure lower than both Bitcoin and gold.
Since the merger, which converted Ethereum to Proof-of-Stake, more than 135,000 ETH have been burned, reducing supply. This combustion mechanism has further amplified its deflationary aspect.
Despite moderate price movements in recent months, growing demand and the deflationary characteristics of the network set the stage for potential long-term price increases.
The combination of Ethereum supply reduction and increasing network usage will likely drive ETH prices higher in the future.
Source:
Leading smart contract platform
Ethereum’s dominance as the leading smart contract platform remains unchallenged. Since its founding in 2015, Ethereum has been the foundation for innovation in the DeFi and NFT sectors.
Now that ETH 2.0 is live, the network is more scalable, secure, and energy efficient than ever before. These developments contribute to Ethereum’s continued growth in the blockchain space.
Read Ethereum’s [ETH] Price forecast 2024–2025
The continued development and use of Ethereum’s blockchain, coupled with reduced inflation and deflationary mechanisms, are key drivers behind the expectation of higher prices.
Ethereum is well positioned for strong near-term performance. It is necessary to keep a close eye on Ethereum’s next steps, especially with the potential for gains as 2025 approaches.
Credit : ambcrypto.com
