Ether (ETH) Set for 55% Surge After Key Technical Breakout, as Supply Turns Deflationary, Says This Well-Known Analyst
Famous crypto data analytics firm Matrixport’s head of research Markus Thielen argued in a recent report that Ether (ETH) could be set for a more than 55% surge to $3,000.
Ether is the second most valuable cryptocurrency in the world by market capitalization after Bitcoin (BTC) and powers the Ethereum layer-1 smart-contract-enabled blockchain, which remains the most widely used blockchain in the DeFi, NFT and broader web3 industry.
In a recently published note on defiontarget.com, Thielen pointed out that Ether appears to have now broken to the north of its downtrend from the yearly highs, and also pointed out that Ethereum network activity has improved in recent weeks, leading to the Ether supply turning deflationary once again.
Thielen’s analysis included a chart showing that Ether appears to have broken to the north of a pennant structure that it had been in the throws of forming since late 2022.
Moreover, he argued that “revenues for the Ethereum ecosystem are bottoming out from depressed levels… (which) this could signal a tradeable bottom for ETH”.
“While revenues have only climbed back into the summer 2023 range of $30 million in weekly fees, the shocking number of just $12.1 million during the week of October 9 might be behind us”.
“A tactical bullish trade could have merit for as long as weekly Ethereum fees stay above $30 million,” he added.
As per TokenTerminal, the Ethereum network generated fees of around $36 million last week.
This recovery in network fees means a higher ETH burn rate (the majority of Ethereum network fees are burnt).
Indeed, as per Glassnode, the Ether inflation rate recently hit its lowest level since August of -1.2%, having recently been as high as 0.3% in early October.
That should boost optimism
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