{"id":313926,"date":"2021-08-02T15:12:17","date_gmt":"2021-08-02T12:12:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-ethereum-can-hit-3k-in-the-short-term-despite-overvaluation-risks\/"},"modified":"2021-08-02T15:12:17","modified_gmt":"2021-08-02T12:12:17","slug":"3-reasons-why-ethereum-can-hit-3k-in-the-short-term-despite-overvaluation-risks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-ethereum-can-hit-3k-in-the-short-term-despite-overvaluation-risks\/","title":{"rendered":"# 3 reasons why Ethereum can hit $3K in the short term despite overvaluation risks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ecb43e269\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ecb43e269\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-ethereum-can-hit-3k-in-the-short-term-despite-overvaluation-risks\/#That_bullish_trio\" >That bullish trio\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Ethereum can hit $3K in the short term despite overvaluation risks <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>\n<p>Ethereum&#8217;s native asset Ether (ETH) dropped after reclaiming its two-month high in the previous session, suggesting that its recent bullish rally was nearing exhaustion.\u00a0<\/p>\n<p>In detail, the ETH\/USD pair topped out at $2,699 on Sunday for the first time since June 7. The pair&#8217;s peak level also pushed its relative strength index (RSI), a momentum-gauging indicator, above 70, a mark that analysts consider overbought. <\/p>\n<p>Seemingly, traders with short-term risk setups sold the Ether top to secure interim profits, leading up to a modest downside correction.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/c3424d44-4fc3-4970-94c3-d7ca082b4db0.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Ether eyes a run-up towards $3.25K based on a Falling Wedge breakout setup. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>On Monday, Ether prices rose 1.81% to $2,600 to offset the Sunday sell-off risks. <\/p>\n<p>The upswing indicated that traders could still place higher bids for the cryptocurrency, especially in the days leading up to the Ethereum&#8217;s London hardfork upgrade that would\u2014for the first time\u2014bring deflationary features to the project&#8217;s economy via a new base fee burning mechanism.<\/p>\n<p>Greg Waisman, co-founder, and COO at payment network Mercuryo, noted that Ether&#8217;s prices could easily cross above $3,000 after the hardfork, given it would bring a &#8220;more flexible and cheaper fee structure&#8221; to the Ethereum network, boosting adoption. The analyst told Cointelegraph:<\/p>\n<blockquote><p>&#8220;The hype buildup with respect to the forthcoming London hardfork is not reflective of the current price trend [&#8230;] Ethereum is currently seeing a retracement; it confirms that the sellers are deliberately lowering the price for a post-upgrade price pump.&#8221;<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\">#Ethereum<\/a> has notched a 12-day winning streak, the longest ever<\/p>\n<p>The IOMAP indicator reveals that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> is sitting on strong support while facing the last 2 key levels of on-chain resistance on its path to $3k once again<\/p>\n<p>Between $2,598 and $2,753, 1.19m addresses bought 2.03m ETH <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/KAP3y0V94i\">pic.twitter.com\/KAP3y0V94i<\/a><\/p>\n<p>\u2014 IntoTheBlock (@intotheblock) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/intotheblock\/status\/1422147991650119686?ref_src=twsrc%5Etfw\">August 2, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"That_bullish_trio\"><\/span>That bullish trio\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At least three on-chain indicators tracking Ether flows in and out of dedicated addresses foresee an extending upside setup.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/quicktake\/610650f2690de17498d53a6a-ETH-SupplyDemand-Structure-is-Bullish?utm_source=telegram&amp;utm_medium=sns&amp;utm_campaign=Quicktake&amp;utm_content=CryptoVizArt\">Spotted<\/a> on CryptoQuant, the three metrics involved tracking Ether reserves across all exchanges and their outflow from trading platforms, as well as the volume of ETH tokens being deposited to Ethereum 2.0 smart contract.<\/p>\n<p><strong><em>Related:\u00a0Traders forecast $3K Ethereum price but derivatives data suggests otherwise<\/em><\/strong><\/p>\n<p>The CryptoQuant data showed that the total Ether reserves on exchanges declined, indicating that fewer traders are interested in exchanging ETH for other assets. Meanwhile, the ETH outflow from those exchanges spiked, illustrating traders&#8217; intention to hold their Ethereum tokens around the London hard fork event.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/baa53498-145c-4eda-9470-5104006bf4c5.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Ether reserves and netflow from crypto exchanges. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>Working in conjugation with the exchange data, the third on-chain indicator showed a surge in ETH deposits to its smart contract.<\/p>\n<p>In detail, users can stake 32 ETH into Ethereum 2.0 smart contracts to become validators on its Proof-of-Stake blockchain. In doing so, they expect to\u00a0received rewards for batching transactions into a new Ethereum block or checking the work of other validators to keep the chain running securely.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/7eff6722-94cc-4b4f-a155-321bfc8db464.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>The number of unique 32 ETH depositors crosses 4,000. Source: CryptoQuant\u00a0<\/em><\/figcaption><\/figure>\n<p>Analysts see the event as bullish because it removes active Ether supply from circulation against a potentially rising demand.<\/p>\n<p>&#8220;The increasing Ethereum 2.0 deposits show a big trust in the future potentials of the Ethereum blockchain, which stirs the scarcity of its native token Ether,&#8221; Waisman explained. &#8220;The situation may impact positively on the coin\u2019s price.&#8221;<\/p>\n<blockquote><p>&#8220;With these positive fundamentals, a return back to the previous all-time high of $4,360 in the long term will be a mild ambition price target for Ether.&#8221;<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-ethereum-can-hit-3k-in-the-short-term-despite-overvaluation-risks\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Ethereum can hit $3K in the short term despite overvaluation risks &#8221; Ethereum&#8217;s native asset Ether (ETH) dropped after reclaiming its two-month high in the previous session, suggesting that its recent bullish rally was nearing exhaustion.\u00a0 In detail, the ETH\/USD pair topped out at $2,699 on Sunday for the first time&#8230;<\/p>\n","protected":false},"author":1,"featured_media":313927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvY2ZlNTBhMjctNjdhYy00ODIxLWIwMTAtYTMwN2Q1ZjE5ODM3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[88119,74863,74860,81262,82402,74891,75326,74938,74939,75150,18981,73785,71407],"class_list":["post-313926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin-watch","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-cryptomarket","tag-ether-price","tag-ethereum","tag-ethereum-2-0","tag-ethereum-price","tag-market-analysis","tag-market-update","tag-london","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/313926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=313926"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/313926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/313927"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=313926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=313926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=313926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}