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Ethereum traded over $ 4,400 this morning, hitting its previous high of $ 4,390 before resistance pushed it down to $ 4.3313.
ETH is trading above its 34th exponential moving average over the time period of the press and forming lower and higher values, indicating that the still waning trend, from the $ 3,000 level, remains unchanged.
The network is valued at over $ 511 billion in press time, with several fundamental and technical changes leading up to today’s milestone.
Technically speaking, the deflationary proposal of EIP is 1559 and ETH 2.0, which has become a real element in the last two years. The former company burns a portion of the network payments every time an Ethereum transaction takes place, while the latter is part of the network’s transition to a consensus model confirming the decision.
Ethereum is enjoying approval among the institutional class according to reports released earlier this year. Some strategists expect Ethereum to hit the $ 5,000 mark by 2022, while some will even set a target price level for the asset at $ 2,800 in 2025.
Coopper said last month that the increasing use of DeFi apps and non-renewable NFT currents has helped Ethereum outperform Bitcoin among institutional classes.
Instead of being a commodity, ETH becomes something of an income-generating asset, where you can raise it at the interest rate and you can block its debt, as noted by Fadi Abualfa, head of research at Medpere.
Despite persisting problems with network congestion, institutional investors have been overwhelmed by the innovations that are taking place on Ethereum. He added that the Ethereum network, from the stabilizers working on it to the numerous DeFi and NFT projects, is undoubtedly the most used in the entire crypto space.
The consequences of the deflationary project are fully visible. Data sourced from Ethereum Watch TheBurn shows that about $ 23.8 billion in assets have been ripped out over the past few months, taking over 669,000 Ethereum from circulating stock forever.
These market dynamics create a hot bet: the constant decline in supply and demand means much higher prices for ethereum in the future, compared to bitcoin, which has a fixed supply of 21 million and does not have a deflationary mechanics.
But despite such mechanisms and the billions of dollars embedded in many DeFi protocols, criticism remains. Paying gas fees under the ethereum program is proving to be a perennial problem – gas can cost more than $ 50,000 in times of network congestion – and transaction times remain slow at 13 tps. Rivals like Solana, Polcado and even Cardano are capitalizing on this by promising much faster networks and charging pennies.
Until then, however, bets on Ethereum remain.