Ethereum (ETH) Targets $3K as Network Activity Surges

Ethereum (ETH) is enjoying increased network activity. This has sparked hope in the crypto world. Markus Thielen, the head of research at Matrixport, views this happily. He sees positive signs ahead.

Thielen believes in Ethereum’s future, based on its weekly revenue data. He mentions, “Ethereum’s income levels are rising from low points. This could mean a good time for ETH trading.” This view is backed up by the noted increase in the weekly income of Ethereum over the last fortnight.

Remarkably, according to Token Terminal data, the network’s transaction fees—also referred to as gas fees—have topped $30 million for the past two weeks. When contrasted with the annual low of $12 million noted in early October, this represents a significant improvement.

The Ethereum blockchain reached a high point in about eight months, processing an astounding $250 billion worth of transactions in the last week alone. And Thielen’s optimistic view doesn’t end there. As long as fees stay over $30 million, he says it makes sense to set a price target of $3,000 for ETH. Technical chart patterns support his bullish assessment by showing a bullish trend as well.

Thielen’s outlook on Ether, known as ETH, has entirely shifted. From his earlier pessimistic view in September, he’s now optimistic. Last October, Ether hit a record low in six months. He had voiced worries about falling network activities and profits. His predictions were spot on at that time.

Furthermore, it hit a 15-month low in relation to Bitcoin (BTC). Still, things have changed significantly since then. According to CoinMarketCap data, Ethereum’s value has increased by 15% over the last month, comparable to the overall crypto market. It is currently trading at $1,878.

Ethereum Turns Deflationary:

Interestingly, recent blockchain information shows that more ETH was burned than produced last week. This suggests a shift in Ethereum from an asset that inflates to one that deflates. This change could make ETH a better investment. Having a finite resource can increase the worth of each ETH coin.

Data from the blockchain examination platform IntoTheBlock reveals that Ethereum’s user activity boost is due to capital flowing from Bitcoin to alternate coins. Lucas Outumuro, IntoTheBlock’s research head, suggests that such a fast-paced activity might be the lead runner to a bullish crypto market trend. He shares, “An uptick in on-chain activities and increased spot-driven investments hint towards a demand surge propelling crypto’s ascendance.

The author’s views are for reference only and shall not constitute investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing