Ethereum has long attracted attention in the cryptocurrency world as an asset recognized as “ultra” sound money. However, latest developmentsindicating that this status is in danger. ETH’s inflation rate rising to 0.73% and its total supply increasing are raising concerns that Ethereum may lose this title. Since the Dencun upgrade in March, Ethereum’s supply has increased from 120,060,000 ETH to 120,309,508 ETH. The increase appears to have reversed some of the post-Merge gains.
Increased Supply and Inflation Fears Worried Investors
While the increase in Ethereum’s supply is considered positive for staking investors, there is a net loss of value for non-staking investors. Crypto analysts such as Thor Hartvigsen state that the high supply benefits staking investors but causes a net loss of value of around 0.7% for non-staking investors. This loss rate is higher than other Layer-1 Although it is low compared to other projects, it is a situation that worries investors. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Ethereum rose 0.5% in the last trading day to $2,520. Technical analysis shows that ETH is moving between the $2,320 support and $2,817 resistance levels. The double bottom movement on the daily chart is striking and could be a sign of a potential rally. If Ethereum breaks through the $2,817 resistance, it is estimated that the price could rise to $3,300. The $3,300 level will also increase the possibility of the 100-day SMA breaking above the 200-day SMA. Such a situation is also considered a bullish signal in the markets.
However, if the resistance at $2,817 is not cleared, Ethereum is likely to see a pullback. This level has been approached twice in recent weeks, and both times ETH pulled back.
Market Indicators and Possible Scenarios
The Relative Strength Index (RSI) is currently at 42 and is struggling to break above the SMA. The 42 level could be a sign of an uptrend in the short term, but the Awesome Oscillator is showing red bars, suggesting that the markets are still in a downtrend.
If the daily close is below the 2,320 support level, the bullish scenario may become invalid and ETHThere may be further declines in .
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
