According to information released by market intelligence platform IntoTheBlock on March 18, the Ethereum supply has been reduced by 66,000 ETH by 2023, which is a landmark move for the crypto world.
This achievement is the result of “The Merge” upgrade in September 2022 that converts the Ethereum consensus to a PoS consensus. With the new consensus mechanism, part of the ETH transaction fees will be destroyed. This makes Ethereum deflationary.
Net ETH Issuance | Source: enter the block
For those unfamiliar with the term, a deflationary currency is a currency whose supply decreases over time. This is in contrast to an inflationary currency where the money supply increases over time.
Notably, deflationary currencies are particularly attractive to crypto enthusiasts looking for scarce digital assets, as they believe that scarcity can increase the value of assets.
Upgrade Shanghai in April
It is worth mentioning that the much-anticipated Shanghai-Capella upgrade (also known as the Shapela upgrade) is scheduled to launch on April 12, 2023.
The most notable aspect of the upgrade is Ethereum Improvement Proposal (EIP) 4895, which will allow validators to withdraw their stake from mainnet. This is an important feature that was dropped during Ethereum’s transition to PoS consensus last September, following The Merge upgrade.
As of press time, ETH prices are hovering around $1,832, up 5% on the day and 27% in the past week.
‘Monster’ ETH Bull Run Is Coming, Other Altcoins Will Do Better
A well-known analyst who correctly pointed to the bottom of Bitcoin in 2018 is predicting a huge rise in ETH.
Anonymous Analyst Smart Contracter suppose i think ETH appears to be in the final stages of a correction and is poised to rise.
“ETH/BTC just hit a 6 month low, just 3% below my major buy zone. Not a situation where I expected this to happen (I thought ETH and BTC would fall, but ETH fell more) But I’m unlikely to miss the upcoming ETH monster rally.”
source: Smart Contractor
According to the chart, analysts say that ETH/BTC is in a bearish correction and is about to hit the key 0.618 Fibonacci retracement support, which traders see as a possible recovery point.
Smart Contracter’s optimism for ETH comes as crypto analytics platform Santiment says Sharks have amassed 3.61 million ETH worth a whopping $6.13 billion over the past year.
However, whales sold more than twice that amount.
“Ethereum main addresses have drastically changed their supply. Addresses holding 10-10,000 ETH have added 3.61 million coins over the past year. Meanwhile, addresses holding 10,000-10,000,000 ETH have increased over the same time period A total of 9.43 million were sold.”
analyst also notes Optimism (OP) is on the rise.
“OP extended bullish on USD, BTC and ETH pairs on daily charts. Looks like one of the altcoins doing really well in my opinion.”
source: Smart Contractor
Using the Elliott Wave theory (an advanced technical analysis method for predicting future price action based on crowd sentiment expressed in waves), Smart Contracter indicates that the OP is at the bottom of a correction and creates the conditions for a turn to an uptrend.
source: Smart Contractor
Currently, OP is trading at $2.84, up nearly 7% over the past 24 hours.
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Ming Ying
According to Kyptos
