It seems like there is never any shortage of fud when it comes to any asset. Some times it's just people spilling out a bunch of info they heard from someone else as unproven rumors and other times it can be backed.
I too fell for this a little bit over the last year with Ethereum as the price continued to tank we could look at things like how much the chain was being used, are there still high fees, inflation, development and so forth and yes all of those things were trending a bit downwards.
However with the rebounding price in Ethereum as people are getting a little tired of the mere 5% -7% gains of bitcoin now lol they are on to bigger things and Ethereum is honestly the next best if not really the best in terms of real use cases for the blockchain.
You see bitcoin is nice and all but it really doesn't do much. It does what it should and that's being a very secure measure of store of value. But Ethereum on the other hand is another very long standing blockchain that's been through the ringer and stood above the rest a number of times. The recent downward trend in price feels like one of those times as many highlighted high fees, less development and overall less usage of the chain due to layer two tokens and blockchains picking up the slack. But all of these tie back into Ethereum at the end of the day.
What really spooked a lot of people about ETH was the constant increase of BTC and really no move but negative in price for ETH. There was large news and sentiment from holders and users that Ethereum was actully a dying blockchain. From centralization of nodes to developers jumping ship to other places like Solana there's been a lot of negative press around it all.
That was until recently. About a month or two ago I sat down and really started to look over the numbers in terms of development, use cases etc and it actully spelled a whole other story of lots of massive core development happening.
I think we also need to look at that not all development is the same. For example 100 developers pumping out random meme coins on Solana compared to someone building out a full DeFi system, NFT game etc just can't be compared. Of course people love their memes but at the end of the day you still need applications and structure to run it all.
With all of this information and recent price rallies it's now expected as the alt coin season heats up that ETH new ATH could very well be around the $7,000 mark which is roughly where I would put it as well. Of course you have maxi people pushing $12,000+ but that seems a bit extreem. Not that it couldn't happen but A LOT of things do need to go into play before that happens.
What's your price prediction on ETH?
Posted Using InLeo Alpha