Ethereum (ETH) price forecast shows that it is on its way to secure the biggest weekly gains in over 2 months after it broke above the intraweekly resistance level.
Ethereum price analysis and forecast : The first blockchain to process $1 trillion this year
Ethereum is near to becoming the first blockchain to process $1 trillion in 2020, recording a twice higher transaction volume than Bitcoin. The transaction volume’s 30-day rolling daily average is currently around $7 billion, substantially higher than Bitcoin’s $3 billion, according Messari.
If it maintains this rate, Ethereum is likely to become the first blockchain to process $1 trillion in transactions this year, as Messari said. Bitcoin is expected to settle around $800 million in 2020, its best performance after 2018.
Apart from that, Ethereum’s best performance in terms of transaction volume was registered in 2018 when it settled around $500 million in volume, in comparison to Bitcoin’s $849 million that year.
However, this doesn’t show a clear comparison between the two largest blockchains in the world as Bitcoin mainly reflects transactions of value denominated in Bitcoin, while Ethereum handles the transactions for an entire sector.
Ryan Watkins at Messari said a large part of Ethereum’s volume is because of a significant surge in ERC-20 stablecoin volumes, with much of Tether (USDT) transfers now taking place on Ethereum and yield demand boosting supply increase of over 600% for MakerDAO’s Dai stablecoin.
He also pointed to the soaring on-chain liquidity from decentralized exchanges (DEXs), with Uniswap and Curve together securing over $20 billion in volume in the last month. DEXs account for over 13.6% of total exchange volumes.
Still, Messari said that “the next twelve months could come to define the platform wars” in crypto, noting Ethereum’s ongoing high fees as a problem that rival blockchains will seek to solve, alongside “the rise of parallel DeFi ecosystems.”
Ethereum price technical analysis and forecast: it breaks higher
Ethereum price is currently trading 8.7% in the green as buyers work to secure the highest weekly close since August. The buyers also will manage to force a close above the horizontal resistance level at $395, which is likely to facilitate more bullishness in the short term.
The bulls stopped at the next daily resistance near $415. We may see a rotation lower from these levels to return to $395, offering a opportunity to buy ETH at a solid risk-reward level. In this case, the $415 remains the first target while the bulls are likely to push for $446 as their major target in November.