Ethereum Price Prediction as ETH Spikes Up 5% in a Week – Where's ETH Heading Now?

cryptonews.com:

The Ethereum price has dipped by 2.5% in the past 24 hours, reaching $1,641 amid a 2.5% fall for the market as a whole today. Despite this drop, its current price means that it has gained by 5% in a week, while being up by 37% since the start of the year.

As the cryptocurrency market continues to recover this year, ETH is one of the best-placed tokens to rally. With arguably the best fundamentals in the market and enviable network effects, it could witness some big price increases as 2023 plays out, as it cements its position as the biggest layer-one smart contract platform.

ETH's indicators suggest that the altcoin may be due a fall in the coming days, with its relative strength index (purple) beginning to sink down from 60. Likewise, its 30-day moving average (red) has stopped its ascent in relation to its 200-day (blue), and looks ready to come back down, bringing ETH's price with it.

A key support level to watch here is $1,600. If ETH falls below this price, a more substantial selloff may be on the cards, with the coin's last descent below $1,600 leading to a drop to just under $1,500.

This misgivings aside, ETH continues to have some of the strongest fundamentals in the market. Its total value locked in -- at $28.85 billion -- accounts for 58.7% of the entire DeFi sector, although this percentage would be even higher if you also included Ethereum-based layer-two networks (such as Polygon).

Given its early-mover advantage and huge network effects, Ethereum continues to attract investors and users who want to be on the platform that 'everyone else' is on. And with Ethereum successfully completing its transition to proof-of-stake in September, it has laid the foundations to increase its speed, scalability and efficiency.

Ind