A panel of financial experts assembled by Finder provided an updated price prediction for Ethereum. The panel suggested Ethereum to end the year on a high at around $5800. This is a major bit of news for the Ethereum community for many reasons.
The Ethereum community has been in distress for many months now. This year was expected to be their year of dominance with the impending Merge with a host of other soft forks. However, Ethereum has not been able to back up the expectations. The Ethereum price has dropped by more than 43% from its all-time high in November 2021 to around $2800.
What has happened?
However, Ethereum has actually done well in other areas in the past two years. According to a Bankless study, the DeFi TVL in Ethereum has increased 82% from $49.1 billion to $89.5 billion over the year. This measures the value of the assets deposited into Ethereum-based DeFi protocols, such as decentralized exchanges, money markets, and options vaults.
Ethereum has also benefited from the soaring interest in NFTs that are the largest built on the Ethereum blockchain. The all-time NFT sales volume on Ethereum stands at $25.6 billion which is considerably more than the next four put together.
But the panel still holds skepticism about Ethereum with rival platforms showing growth in this period of macro turbulence. Keegan Francis, Finder’s cryptocurrency editor, says,
“Ethereum is at a very uncertain place in its journey at the moment. Ethereum is currently losing DeFi market share to its competitors, although it still remains dominant by a huge margin…. I don’t think Ethereum will be a second cryptocurrency forever.”
Panelist and Thomson Reuters technologist Joseph Raczynski also warns that,
“It (Ethereum) should be more secure, 99% more energy-efficient and deflationary. If that isn’t the trifecta of potential, as a leading blockchain, I don’t know what would be.”
Not all is bad for ETH
Ethereum miners generated about 1.08 times more revenue than Bitcoin miners in April, as per The Block. Ethereum mining has been far more rewarding than Bitcoin. This pattern has continued since May 2021.
The ETH miners saw an increase in their revenue by 6.2% for a total of $1.33 billion. A larger portion of the Ethereum revenues came from the subsidy, at around $1.25 billion. AT the same time, transaction fees totaled around $82.88 million while uncle rewards stood at $58.85 million.
Robinhood Lists Grayscale’s Bitcoin And Ethereum Trusts
On May 6, the financial services company Robinhood announced the firm has listed Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE). Robinhood customers can now gain access the crypto investment products in order to get exposure to bitcoin or ethereum without actually owning the digital currencies.
In Addition to Cryptos, Robinhood Adds Grayscale’s GBTC and ETHE
This week Robinhood added GBTC and ETHE to the company’s platform and the firm’s brokerage account customers can now buy or sell GBTC and ETHE stock and options commission-free.
There’s two new ways to access crypto on @RobinhoodApp. You can start trading $GBTC and $ETHE today. https://t.co/n09aiEVhqEhttps://t.co/6tFrYCsmzx pic.twitter.com/AxKH7xZ0nS
— Grayscale (@Grayscale) May 6, 2022
Robinhood adding GBTC and ETHE investment products follows the firm rolling out its crypto wallet during the first week of April. On April 12, 2022, Robinhood listed shiba inu (SHIB), compound (COMP), polygon (MATIC), and solana (SOL).
The founder and CEO of Digital Currency Group (DCG), the parent company of Grayscale Investments, Barry Silbert, was thrilled to see Robinhood list GBTC and ETHE. “Finally,” Silbert tweeted. “You can now trade Grayscale Bitcoin Trust and Grayscale Ethereum Trust on Robinhood.”
Year-to-date statistics show GBTC is down 46.63% and ETHE is down 44.08%. Grayscale recently filed a Form 10 with the U.S. Securities and Exchange Commission (SEC) for a Zcash Trust, Stellar Lumens Trust, and Horizen Trust.
Grayscale is also in the midst of trying to get its trust converted into an exchange-traded fund (ETF). However, the SEC has been an obstacle for bitcoin spot ETFs to emerge and the U.S. regulator has yet to approve a bitcoin spot ETF.
Grayscale Investments’ CEO Michael Sonnenshein recently explained in an interview that the SEC could possibly violate the Administrative Procedure Act if a bitcoin spot ETF is completely denied.
The firm’s chief legal officer, Craig Salm, described what the conversion process would look like if the trust became an ETF. “GBTC share prices will likely move to trade in line with NAV,” Salm detailed. “Then, the shares would be uplisted from OTCQX to NYSE Arca,” the chief legal officer added.
Grayscale Investments is also asking people to get involved with the effort to get the U.S. regulator to approve the conversion of GBTC to an ETF.
Prior to adding Grayscale’s Bitcoin Trust and Ethereum Trust, Robinhood started its European expansion and recently acquired the UK crypto company Ziglu. Additionally, last month the co-founder and CEO of Robinhood, Vladimir Tenev, discussed how DOGE could scale with Tesla’s Elon Musk.
Tags in this story
Barry Silbert, Bitcoin Ethereum, bitcoin spot etf, bitcoin trust, Craig Salm, DCG, Digital Currency Group, ETF, ETHE, Ethereum Trust, GBTC, grayscale, Grayscale Investments’ CEO, Grayscale’s chief legal officer, Horizen Trust., Michael Sonnenshein, Regulations, regulator, Robinhood, SEC, Stellar Lumens Trust, The SEC, Trusts, US SEC, Zcash Trust
What do you think about Robinhood adding GBTC and ETHE? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Three reasons why Ethereum [ETH] is likely to reach $3,800 soon
Ethereum price shows an interesting development over the course of last week. Despite crashing down, ETH seems to be in a position to show positive returns this week that could push it higher to significant levels.
Ethereum price recovery in progress
Ethereum price crashed 23% over the last month and set a swing low around $2,714. This move formed the second swing high and the third swing low. This downswing was crucial in establishing an ascending parallel channel.
However, drawing a trend line joining the two higher highs and three higher lows shows ascending parallel channel formation. The last two times Ethereum price tagged the lower trend line of the channel, it was followed by a 43% run-up.
Therefore, investors can turn cautiously optimistic at the current position and start accumulating ETH in hopes of a higher move. The parallel channel is the first and the most significant reason why Ethereum price is likely to reverse and undo the losses.
The second reason is the bullish divergence formed between the price’s higher lows and the Relative Strength Index’s lower lows. This setup forecasts a bullish move for ETH and is likely going to propel ETH higher.
Furthermore, using the Fibonacci tool for the 43% upswing from 22 January to 10 February reveals that the upcoming move saturates at a 27% retracement level at $3,554. Using the same logic and applying the Fibonacci tool for the second upswing between 7 March and 3 April, reveals that the target could be $3,856.
Since all of the outlooks are suggesting a bullish outcome, there is a good chance ETH could actually tag the $3,856 target and make its way to the $4,000 psychological level.
Supporting this outlook for Ethereum price is the decline in the supply of ETH on exchanges over the last month. The number of ETH tokens held on these platforms has dropped from 15.24 million to 14.86 in just 30 days, indicating that investors are taking their holdings off exchanges due to their belief in the Ethereum price’s performance.
This indicator coincides with the forecasts from a technical outlook perspective, which adds a tailwind for bulls. Therefore, investors need to be prepared for the next leg-up of Ethereum price.
Bitcoin, Ethereum and finding the middle ground with maximalism
On the latest episode of the Bankless podcast, Vitalik Buterin expanded on his blog article, “In Defense of Bitcoin maximalism.” In fact, he also touched upon why he thinks maximalism is good, a counter-argument of why the concept should be ridiculed, and what lies between the two ends of the maximalism rope.
Addressing the question around Buterin’s thoughts on maximalism, he stated,
“In reality, there’s a collection of things that the Ethereum community is underrating. But, there’s a much bigger argument for the other side that Bitcoin maximalists are not realizing.”
Maximalism and more…
Bitcoin maximalism comes from the deep-rooted thought that the crypto is superior to every other altcoin in the market based on the strength and security the network offers. Conceding somewhat to the favouritism with Bitcoin, the Ethereum co-founded claimed,
“The earliest projects in the industry are the most genuine.”
He further argued that crypto-assets such as Bitcoin have real cultural and structural advantages, thus making them powerful assets worth holding and using. He went on to add that Bitcoin is an excellent example of an honourable cryptocurrency.
That wasn’t all, however. Buterin clarified he doesn’t stand for everything maximalists believe in, adding that maximalists tend to ignore some pressing issues that exist.
The perspective shift
Addressing the issue of how maximalism might affect the crypto-market, he said,
“Maximalists culture is needlessly antagonistic. It is antagonizing the U.S Government, large country and small country governments. It antagonizes other cryptocurrencies.”
Bitcoin minimalists support the idea of making room for other cryptocurrencies in the market. They don’t see Bitcoin as anything other than a “good-store-of-value.” Ripple CEO Brad Garlinghouse, for instance, believes that tribalism around Bitcoin and other cryptos is responsible for holding back the growth of the $2T cryptocurrency market.
Bitcoin maximalism will always exist as a particular class of the cryptocurrency society would always stand for it. However, maximalists have been more flexible of late.
For example, Grayscale found that that more than 87% Bitcoin owners also own another cryptocurrency.
A middle ground
Speaking of finding a middle ground between the ardent Bitcoin maximalists and minimalists, Vitalik Buterin went on to explain how Ethereum tries to find a middle ground. According to him, it keeps the core protected and at the same time, interacts and appeals to various groups with different schools of thought.
“Ethereum is the decentralized center and has extremes on one side and extremes on the other side and the Ethereum community is, I think, one whose greatest virtue really doing its best to kind of move toward having the best of both.”
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