Ethereum continues gaining upside momentum as bullish momentum builds up across the market. In the last 24 hours, Ethereum has gained by 3.65%. As of 11:29 GMT+3, Ethereum was trading at $3523.90.
36% Of Ether Now Locked In Smart Contracts
This comes when Ethereum continues to grow in adoption for real-world use cases. This is evident in the amount of locked Ethereum in smart contracts. This amount has now made an all-time high of 36% of the total supply. The implications of such a huge amount of Ether locked in smart contracts are huge, especially regarding Ethereum’s value.
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First, it means that, unlike most cryptocurrencies whose sole basis of value is hype, Ethereum is getting its value from actual usage, ushering in the era of decentralized applications. This will likely see Ethereum draw more interest from institutional money, seeking value growth and stability.
The high amount of Ethereum locked up in smart contracts also means that the amount of Ethereum available for trading is shrinking over time. This means the price will likely keep increasing as demand continues to outstrip supply.
The amount of #Ethereum locked in Smart Contracts reaches a new all-time high of 36%! pic.twitter.com/9UcqqzOFxm
— Leon Waidmann | On-Chain Insights🔍 (@LeonWaidmann) March 4, 2024
Also, Ethereum supply locked in smart contracts is hitting all-time highs at a time when bulls are in control across the market. This could see the hype around Ethereum continue to rise and put Ethereum on course to hit highs of $10k or more.
Dencun Is Just A Few Days Away
Besides Ethereum’s growing utility, investors are also keen on the upcoming upgrades to the Ethereum network. One of the most anticipated of these upgrades is Dencun, which is slated for March 13th. This upgrade aims to deal with the issue of gas fees by making it easier to transact on Ethereum layer-2s with lower fees. As the upgrade approaches, the hype around Ethereum could see the token hit highs of $10k or more before the Bitcoin halving pushes the market to new highs.
EIP-4844 is a price target.#DENCUN #EIP4844 #ERC4844 https://t.co/vRagXM580F pic.twitter.com/XZ5QWcRt6d
— $Dencun|EIP-4844 (@DencunErc20) March 2, 2024
Ethereum is holding steady above the $3500 mark as Ether locked in smart contracts hits all-time highs, and the Dencun upgrade draws closer.
Ethereum Breaks Out Of Inter-Day Range, A Signal To More Upside
For most of Sunday, March 3rd, Ethereum was range-bound between $3458 support and $3489 resistance. However, with volumes rising across the market, Ethereum has started the first trading day of the week with a breakout. Ethereum has broken through the $3489 resistance and is now gaining momentum above the $3500 mark.
If bulls sustain the current momentum, Ethereum could test its all-time high of $4800 today or within the week.
However, if bulls lose momentum, two scenarios could play out for Ethereum today. The first is a consolidation between $3500 and $3489, now the day’s support level.
On the other hand, if short sellers push Ethereum through the $3489 support, then the $3458 major support could come into focus. If bears can push Ethereum through the $3458 support, prices below $3300 could be tested in the day.
Ethereum Price Prediction – The Case For Ethereum Hitting $4800
While there is a probability that Ethereum price could consolidate or turn bearish in the day, the odds are higher that the $4800 all-time highs are coming soon. Several factors support the case for Ethereum hitting its all-time highs. First, Bitcoin is adding bullish momentum to the market, and Ethereum is following closely.
With Bitcoin now closer than ever to its all-time highs, the odds are that Ethereum, too, could see an explosion in volumes that push it to its all-time highs this week.
Ethereum’s potential to hit its all-time highs is also supported by the fact that Ether currently has big news of its own. The Dencun upgrade is one of the most awaited events in crypto. That’s because it is expected to drive more people to start trading Ethereum tokens and, in the process, drive up demand. With this demand coming when supply is locked, it’s easy to see why Ethereum’s odds of hitting its all-time highs this week are pretty high.
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