Is it Too Late to Buy Ethereum? Crypto Experts Give Their ETH Price Predictions for 2023
Since failing to break above early November resistance in the $1,675 area towards the end of last week, Ether (ETH), the token that powers the Ethereum blockchain, has been in consolidation mode. It was last moving sideways in the $1,600s, as traders monitor upcoming macro drivers including US Q4 2022 GDP growth figures on Thursday and December Core PCE inflation data on Friday.
Both data readings could impact expectations for Fed tightening this year, which could impact crypto – easing expectations for Fed tightening as a result of evidence of slowing US inflation and growth have lifted crypto so far this year. Indeed, despite its recent consolidation, Ethereum is still trading over 35% higher so far this year, meaning the world’s second-largest cryptocurrency by market capitalization is on course for its best monthly performance since July 2022.
Positive macro tailwinds, as well as optimism about Ethereum’s upcoming upgrade that will allow withdrawals could well support further upside. Indeed, progress towards the so-called “Shanghai” hard fork appears to be going smoothly – a core Ethereum developer just announced on Twitter that developers are have created a new test-net to test the soon-to-be-released staked ETH withdrawal feature.
Meanwhile, another possible tailwind could be if ETH supply conditions remain deflationary. According to data from ultrasound.money, ETH’s annual inflation rate fell into negative territory again at the start of last week for the first time since November.
A break above the $1,675 resistance area could open the door to a swift rally towards the next major resistance zone around $1,790 and then the summer 2020 highs in the $2,030.
According to algorithm-powered crypto forecast website Wallet
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