Unlike the majority of altcoins that have seen significant price increases in recent days, Ethereum (ETH) is currently flat, despite the unique fundamentals inherent in the world’s most popular blockchain network. According to CoinMarketCap, the digital currency is up 0.74 percent and trading at $3,277.17 at the time of writing.
Ethereum’s price has remained stable over the last seven days, ranging between $2,959.03 and $3,333.99. The positive trading range in the last month has not been notably divergent, implying that Ethereum bulls are content to keep prices above the core psychological $3,000 support zone.
The fundamentals of Ethereum are strong.
The Ethereum network underwent a significant network upgrade earlier this month known as the EIP 1559 upgrade or the London Hardfork. This upgrade resulted in significant changes to the fee structure, as well as converting the Ether coin into a deflationary asset, in which a consistent amount of the digital currency is burned and removed from circulation.
To date, up to 71,749 Ether have been burned, equating to approximately $235.1 million at the current price of ETH. This deflation is expected to increase scarcity and have a corresponding impact on the price of Ethereum; however, this has played little role in causing the cryptocurrency to rise.
On-chain data from Glassnode also suggests that Ethereum is being accumulated indefinitely. The number of addresses holding more than 32 coins has recently risen to a three-month high of 107,984, according to the data analytics platform.
In the past few days, the ensuing stackup, which is expected to supplement the token burning, has played little role in pushing Ethereum to more ambitious price levels.
Ethereum Price Predictions
The 4 hour chart of ETH/USD on TradingView shows a flattening indicator growth. The trio of the 9-day Moving Average, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) are flattening at the top, indicating a potential price reversal, amidst the broad stretch of the price to break the resistance at the $3200 price level.