Bitcoin, as the market mover, is pointing to a new BTC bottom indicator known as the SSR ( Stablecoin Supply Ratio). In addition, given the current price trends, several analysts are forecasting an Ethereum Supply Shock.
Bitcoin has shown strong signals of accumulation every time the SSR has dipped, which is only four times including the present dip, and the dips have been great chances to buy. Bitcoin is currently stable and maybe exhibiting strength, implying that the rest of the market will rally as well.
The second market mover, Ethereum, is also displaying momentum, but it is also experiencing a SUPPLY SHOCK, which has been building for months and years.
To be clear, a supply shock occurs when an unexpected incident alters the supply of a product or commodity, resulting in an unanticipated price adjustment.
Why is it likely that ETH prices will skyrocket in the future due to incidents similar to Bitcoin halvings? Many catalysts are expected to be important upcoming updates: a change in narrative, as well as an updated crypto infrastructure, are all on the way for ETH!
Ethereum is about to get three halvings in a succession, something it has never seen before. The first cause would be the long-awaited and extensively awaited EIP1559, which will burn a significant portion of the fees paid by miners; the more the network is used, the more payments will be destroyed. With the implementation of EIP1559, Ethereum is likely to become a net deflationary asset.
Other Catalysts Likely To Cause A Bullish Rally!
The reserves of all ETH exchanges have continued to decline, reaching a new low of 19.8272 million, the lowest in the last year. At the same time, the ETH2.0 deposit contract’s effective balance increased to 6.11424 million. This could indicate that ETH will not be available for purchase anytime soon.
DeFi and NFT are also leading tales with a lot of potential. Since 2020, Defi has been the fastest-growing industry on Ethereum in terms of transaction volume. Developers are also constructing an increasing number of applications on the Ethereum network. Also, in the first half of 2021, the number of NFTs sold grew to 2.5 billion, which is crazy.
Ethereum may also potentially benefit from Bitcoin’s environmental concerns, as it will not have the same high power consumption as Bitcoin due to POS.
ETH Price Targets?
Many people and analysts are grossly underestimating the impact of impending Ethereum improvements on the price of its coins. The price targets for Ethereum are ridiculously high. According to Squishchaos on Twitter, the minimal basic objective is $30k to $50k. He claims that $150k is realistic, citing ethereum’s Triple Halving as the key motivator.