Ethereum Price Forecast – Triple Bottom Breakout – Can We Expect More Selling?

ETH/USD closed at 1585.97 after placing a high of 1695.74 and a low of 1558.99. ETH/USD continued its bearish streak for the fifth consecutive session. It fell below the 1560 level on Wednesday following the latest plunge in Bitcoin and the negative developments surrounding Ethereum. The recent decline in the Bitcoin prices was due to the perceived slowing down of the institutional investors’ interest in the Bitcoin market. In the past day, the sustained growth in the price of Bitcoin could be attributed to the lack of new funds. Uncertainties increase when there is no idea when money will flow in. Another reason could be a fall in big holdings as the biggest player’s wallets with 1000 to 10,000 bitcoins had also cut their holdings by 307,000 bitcoins since December that weighed on Bitcoin prices, and ultimately dragged the Ethereum prices with itself.

On the other hand, market capitalization plunged the second-largest cryptocurrency due to ETH miners’ upcoming protest on April 1st. As the date is getting close, ETH is falling more due to the threats of protest. ETH miners have planned to move their hash rate to Ethermine for 51 hours on April 1st as a protest against the upcoming upgrade EIP-1559. This upgrade will introduce a fee-burn mechanism that will affect the revenue of miners. Such coordinated action by ether miners has put into question the decentralization of the Ethereum network. However, this has also allowed Ethereum Vitalik Buterin and developer Danny Ryan to agree to push forward phase 1.5 of ETH 2.0. The move will support the blockchain to achieve the scalability that it desperately needs and make the miners obsolete.

Since phase 1.5 has not yet been implemented, many have argued that developers should look for other ways to reduce the transaction fees without rushing things. All these developments have been keeping Ethereum under pressure for the past few days. Furthermore, the rising demand for alternatives to the Ethereum network due to its high transaction cost has also been dragging the prices of ETH/USD . On Wednesday, the Hermez Network has announced the launch of its zk-rollup mainnet release. This means that the network is now open for users who can benefit from the rollup’s much lower transaction cost than Ethereum.

On the other hand, Vitalik Buterin, the founder of Ethereum, has said that NFTs can be applied to socially relevant causes like charities and funding public goods. However, this cannot be done while the technology is only viewed as a casino that largely benefits already-wealthy celebrities. He added that the non-fungible tokens (NFTs) could significantly impact other social areas with support and coordination.