Ethereum Price Prediction as $9 Billion Trading Volume Comes In – Can ETH Overtake Bitcoin?

cryptonews.com:

The ethereum price has dropped by 1% in the past 24 hours, amid a 1.5% decline for the cryptocurrency market as a whole. At $1,649, it has barely changed after a week and is up by 6% in the last 30 days, with the biggest altcoin also rising by 38% since the start of the year.

While ETH is down today, there are various good reasons to expect it to rally soon. Because not only does it continue to be the biggest layer-one network by total value locked in and apps, but Coinbase has just announced its own layer-two sidechain for Ethereum, something which will undoubtedly boost usage of the latter.

ETH's chart reveals that, despite bullish news, the altcoin is down probably because it was due a fall, as suggested by its technical indicators. For example, its relative strength index (purple) had spent much of January above 70, and have now begun slipping down this month, while falling close to 50 in the past few days.

At the same time, ETH's 30-day moving (red) has peaked in relation to its 200-day average (blue). Again, this suggests that it may be due to suffer a few more losses before it can begin rising again.

However, so far ETH has stuck to its support level of $1,600. It hasn't fallen below this price since the beginning of the month, and it's this author's view that it's unlikely to do so anytime soon.

There are various reasons for this view, with Coinbase's announcement of Base, its layer-two solution for Ethereum being massively bullish for ETH.

For instance, Coinbase has declared that it's aim for Base is to "onboard 1B+ users into the cryptoeconomy." This effectively means onboarding one billion or more users into the Ethereum ecosystem, since Ethereum will obviously be the underlying settlement layer for Base.

As such,