Ethereum price consolidates around AUD$2.3k as volatility persists
ETH's ongoing support building around AUD$2.3k may see the altcoin either rise to AUD$2.9k or dip to AUD$1.8k over the coming weeks.
- Ethereum's (ETH) market capitalisation currently stands at AUD$315 billion.
- Experts believe that the ongoing market correction was much needed since the total valuation of the crypto industry rose by 12.5 times between November 2019 and 2021.
- GameStop recently unveiled the beta version of its Ethereum wallet, which will be compatible with its highly anticipated non-fungible token (NFT) marketplace.
After dipping to a relative low of AUD$2,350, Ethereum has struggled to regain its key price threshold of AUD$2,750. Over the past week, ETH's value has dropped by -8% while trading at AUD$2,600.
The altcoin is currently building support around AUD$2,500, suggesting that a recovery could be on the cards. If bulls are able to drive ETH's near-term price action, the currency could test its resistance of AUD$3,000. However, if bears take control, ETH could sink as low as AUD$1,800.
Analysts believe that the ongoing market wipeout may be good for the industry in the long run. Polygon co-founder Mihailo Bjelic recently told CNBC that the sell-offs were much needed since the total market cap of the crypto industry grew by 12.5 times between November 2019 and November 2021, a rise that severely outpaced most traditional sectors. He added: "During such times, a correction is normally needed, and at the end of the day is healthy."
Since scaling to its all-time high last November, Ethereum has been in a state of steady decline. The asset, much like the crypto market, has shed 60% of its value. Traders see more bleeding, with ETH potentially losing 80% of its all-time-high gains before forging a trend reversal.
Crypto adoption drives on
Major venture capital (VC) fund Andreessen Horowitz or a16z recently announced the launch of a new crypto fund touted to be worth US$4.5 billion. This is a16z's fourth such offering and is more than twice its previous crypto investment fund. Of the amount, US$3 billion has been set aside for venture investments while US$1.5 billion will be used to fund early-seed projects.
The fund serves as a strong indicator that VCs are still interested in the crypto market despite bears being firmly in control.
GameStop launches new crypto wallet
With GameStop's highly anticipated NFT marketplace set to go live shortly, the firm has released a beta iteration of its ETH wallet. Referred to as the GameStop Wallet, the browser-based storage solution will be compatible with the company's soon-to-be-released NFT ecosystem. Reports say that a mobile version of the app will also be released soon.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.