Recently, ETH has been continuously undervalued after experiencing a shocking crash in the Crypto world and a decline in users. Many people doubt the potential of ETH in the current cycle. So does ETH still have potential? Let's find out with MGS Trading.
1. Scalability with layer-2 and EIP-4844
Ethereum is leading the way in scaling through layer-2 solutions like Arbitrum, Optimism, and the upcoming proto-danksharding upgrade (EIP-4844). Other blockchains may boast lower transaction speeds and costs, but Ethereum focuses on decentralization and security, while improving scalability through these solutions without compromising other important factors.
EIP-4844 promises to help Ethereum significantly reduce transaction fees, one of its biggest problems today. No other blockchain can combine all three factors: decentralization, security, and scalability like Ethereum
2. Leading DeFi and NFTs
Ethereum is the most important platform for DeFi and NFTs. Total Value Locked (TVL) on Ethereum DeFi applications has always been dominant, far surpassing other blockchains such as Solana or Binance Smart Chain . The DeFi ecosystem on Ethereum is not only rich in quantity but also in quality, with projects such as Uniswap, Aave, and MakerDAO.
In the NFT market, Ethereum continues to dominate, with many major projects and exchanges like OpenSea operating primarily on the network. While other blockchains can handle NFTs at lower costs, Ethereum remains the dominant platform due to its security and high liquidity.
3. Top-notch security and decentralization
While some blockchains like Solana may be faster and cheaper, they often come at the expense of security and decentralization. Ethereum, after switching to proof-of-stake (PoS), has cemented its position as one of the most secure platforms. The Ethereum network with thousands of globally distributed nodes ensures optimal stability and decentralization.
4. Attractiveness to the organization
Ethereum is one of the blockchains that major financial institutions are most interested in, especially after switching to PoS and ETH-related ETFs started to be approved. The expansion of ETH-based financial products will continue to attract more capital flows from large investors in 2024.
5. Technical Analysis (TA)
From a technical perspective, Ethereum is currently showing some positive signals but there are also short-term hurdles to watch out for.
• Important Resistance and Support: Ethereum is facing strong resistance at $3,105. If this level is broken, ETH is likely to move towards its target of $3,745 by 2024. However, a short-term correction could drag ETH to $1,750 before resuming the uptrend.
• 13-week and 26-week EMAs: The 13-week and 26-week EMAs are trending up, with the 26-week EMA acting as dynamic support. This is a positive sign that Ethereum's long-term bullish momentum remains strong.
• RSI Indicator: Currently, Ethereum's RSI is showing overbought conditions, so a short-term correction may occur. However, if Ethereum can hold the support level around $1,750, this will be a good opportunity to accumulate more ETH for long-term investors.
Conclusion: Ethereum's Unique Potential in 2024
Ethereum continues to be a leading blockchain thanks to its combination of security, decentralization, and scalability. Other blockchains can compete on transaction speed and costs, but Ethereum excels at combining decentralization and security while maintaining a thriving DeFi and NFT ecosystem.
Technically, despite the potential for a short-term correction, ETH still has long-term growth potential, especially as technical upgrades like EIP-4844 are implemented and institutional interest grows.
At the present time, there is no network that can surpass ETH, so even though ETH is losing ground, ETH is still a monument, the second most influential coin in the Crypto world. So if you believe in the future of Crypto & Blockchain, there is no reason to ignore ETH.
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