Ethereum price is up by 3 per cent in today’s trading session, extending the 7 per cent bullish push which started in the late hours of yesterday’s trading session. In the past few months, the Ethereum price has struggled in the markets, which has seen its value drop by over 60 per cent year-to-date.
However, there was optimism that with the launch of the Merge protocol last month, the crypto would start another bullish move. Unfortunately, since the launch, Ethereum’s price has continued to struggle.
Since the Merge launch, the Ethereum price has been stuck in a narrow price range of between $1220 and $1400. However, its impact on the cryptocurrency has become evident after a recent report by Coinbase indicated that Ethereum had become a deflationary cryptocurrency for the first time since the merge.
The milestone was achieved after more ethers were burned during transaction verification than were created during the same period. The high burn rate reduced the total Ethereum supply by $0.13. The report also indicated the rate of new ether creation had fallen by more than 90 per cent.
Normally, when the supply of a given cryptocurrency is high, the prices start to fall. Therefore, with the current deflationary shift of the Ethereum crypto, it is highly likely we might start to see the Ethereum price rise due to low supply and high demand for the crypto.
Ethereum Price Prediction
Looking at the chart below, it is evident that Ethereum’s market price is struggling. Since the merge, Ethereum’s price has been stuck trading between the price ranges of $1220 and $1400. In most trading sessions, we have not seen momentum and volatility. Also, due to its correlation with Bitcoin, which is currently seesawing around the $20,000 price level, it has also been impacted by the industry’s sideways trading.
Therefore, I expect the current sideways market to continue. There is a high likelihood that in the coming weeks, the prices will still be trading within the range of $1220 and $1400. A trade outside this price range will invalidate my sideways market analysis.