ETH plans to challenge its November lows again. the TradingView website
ETH, the native cryptocurrency that drives the Ethereum blockchain, is still under pressure following the Fed's hawkish meeting. ETH, also known as Ether, was down more than 5.0% on Friday after breaking down to new monthly lows below its 21-Day Moving Average (DMA) earlier in the session. ETH/USD appears to be on the approach of falling below $1,200, triggering the next phase of selling towards the late-November lows in the $1,150 range.
Price Prediction – Where Next For ETH?
Ether's recent dip and fall below its 21DMA, which had been functioning as a crucial source of short-term support in recent weeks, indicate that the upward momentum that had risen ETH as high as $1,350 from November's sub-$1,100 lows has now been broken. Bears of ether remark that the cryptocurrency is still trapped inside the confines of a longer-term negative trend that has been in place since August.
Hashkey Capital researchers claim in their new DeFi Ecosystem Landscape Report that the DeFi market has a bright future in 2023. "Many DeFi applications are now easier to use than home banking applications, which prepares the way for onboarding more users in 2023," experts write, adding that "the general public is also acquiring a greater understanding of digital wallets as a result of large social media businesses incorporating them". Analysts cite Reddit, Instagram, and Twitter as instances of companies making attempts to integrate crypto-based services into their platforms.
According to Hashkey, the DeFi application may liberate billions of dollars in liquidity from the fast increasing non-fungible token (NFT) market by 2023. The researchers add that "ETH and Ethereum-based assets and L2 based are the major assets utilised in DeFi" and that "DeFi protocols are one of the top consumers and fee-payers of the Ethereum chain".
As a result, they argue that if 2023 is a successful year for DeFi, it will almost certainly be a good year for Ether's price. "More DeFi activity will raise Ether demand while also burning more Ether (EIP1559)," Hashkey researchers write. “More Ether burns will result in more Ether scarcity and deflation… this will lead to higher Ether prices, which will lead to more DeFi
Can Ethereum Flip 2023?
One of the biggest hopes of ethereum supporters and one of the biggest fears of the bitcoin maximalists is that ethereum, currently the world's second-largest cryptocurrency by market capitalization, will "flip" bitcoin, the world's largest cryptocurrency by market capitalization, in the coming years. The "Flip" notion alludes to Ethereum's market capitalisation surpassing that of bitcoin.
Ethereum has a market value of slightly under $148 billion, whereas bitcoin has a market capitalization of roughly $326 billion. In other words, the entire value of all BTC tokens in circulation is about 2.2 times more than the total value of all ETH tokens currently in circulation, based on the current pricing.
Can Ethereum supplant Bitcoin by 2023? Traders should not dismiss the idea. The blockchains of ethereum and bitcoin are significantly different. The latter is "smart-contract" capable, which means DeFi apps may be created on top of it. According to Hashkey experts, a resurgence in DeFi markets in 2023, maybe if global macro conditions improve and adoption trends persist, could significantly enhance ETH.
In comparison, bitcoin just serves as a digital money ledger and does not support a vibrant DeFi ecosystem. It also continues to employ the very energy-intensive proof of work (PoW) consensus process to protect its blockchain, in contrast to ethereum, which has used the far more energy-efficient proof-of-stake (PoS) consensus mechanism since the "merge" in September. As a PoS chain, ETH may now create a constant and predictable dividend, in contrast to bitcoin, which is still a non-yielding asset.
Given all of the foregoing, assuming a wide cryptocurrency market recovery occurs in 2023, ethereum has a good chance of becoming the world's largest cryptocurrency by market cap.
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