Ethereum price rebounds despite losing 20% since the start of April

Posted: 20 April 2022 5:31 pm
News
EthereumPrice0420_Finder_1800x1000

Pundits see ETH scaling down to a relative low of AUD$3,600 (US$2,700) over the coming few days.

  • It is estimated that a sizable 3.3 million ETH will be burned annually after the network makes its highly anticipated transition to a proof-of-stake (PoS) consensus mechanism.
  • The Cardano network has seen an influx of 100,000 new wallet addresses over the last 30 days alone.
  • A number of KuCoin-backed firms have come together to launch a Web3-centric developer fund worth approximately US$100 million.

Ethereum, the world's second-largest cryptocurrency by total market capitalisation, has wiped out its weekly losses after gaining some positive financial momentum over the last 48-hour stretch. At press time, ETH is trading at AUD$4,154.

ETH's value has dipped by a whopping 20% over the last 21 days, hitting a relative low of AUD$3,900 (US$2,900) on 10 April. Technically speaking, the altcoin's fundamentals suggest that a larger drop may occur over the coming few days, potentially seeing the asset drop to AUD$3,600.

However, there are also those individuals confident of a trend reversal. For example, popular crypto investor Lark Davis noted that with Ethereum's supply growth to reduce by -2.8% post its upcoming PoS upgrade, approximately 3.3 million ETH will be burned per year, resulting in its value rising in the near-to-mid term.

Davis further noted that by the end of the decade, Ethereum's total circulation pool will dip to under 100 million. "Or put another way, we will burn the equivalent of all ETH currently sitting on exchanges," he opined.

Seeking Alpha analyst Kennan Mell shares a similar opinion. He believes that Ethereum's proposed network upgrades will most likely have a positive influence on investors, especially those waiting on the sidelines to accrue the asset from a long-term savings perspective.

How to buy Ethereum

Cardano adoption skyrockets over the past month

Despite the bearish market factors driving the crypto market at the moment, blockchain activity on the Cardano (ADA) network seems to be increasing at a rapid rate, with a total of 400 new projects reportedly in the works. Since 15 March, the ecosystem has seen an influx of 100,000 new wallets.

In all, there are now approximately 900 blockchain platforms that are being actively developed on the Cardano network. However, despite these growing numbers, ADA's recent price action has remained relative lacklustre, with the digital currency currently down 20% over the last 14 days.

KuCoin-backed firms deploy a US$100 million Web3 developer fund

Prominent digital asset trading platform KuCoin revealed that its venture capital and non-fungible token (NFT) wings have just launched a new creator's fund that will provide financial support for a range of NFT projects operating within the realm of art, sports and GameFi. The fund will also provide assistance to projects operating within the domain of Web3 development.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Get into cryptocurrency

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site