As the second biggest cryptocurrency by market capitalization Ethereum (ETH) continues to test resistance levels in January after a solid start to 2023, investors are interested whether Ethereum has more room to grow by the beginning of February.
According to information acquired by Finbold using the machine learning algorithms at the crypto monitoring portal PricePredictions, the price of Ethereum is forecasted to trade at $1,582 on February 1, 2023, as per data collected on January 19.
Indicators from technical analysis (TA) indicators, such as the relative strength index (RSI), Bollinger bands (BB), moving averages (MA), moving average convergence divergence (MACD), and others, the platforms artificial intelligence sees a 3% increase by the end of the month.
Ethereum price analysis
Currently, Ethereum is trading at $1,535, down 3.9% in the last 24 hours and up a further 10.85% across the previous week, with a total market capitalization of $188 billion.
In particular, TradingView’s technical analysis indicators on 1-day gauges were extremely bullish. The summary of the gauges aligns with the ‘buy’ sentiment at 15, while moving averages point to a ‘strong buy’ at 13. Lastly, oscillators also point towards ‘buy’ at 2.
Web3 development activity has expanded at an astounding pace despite the challenging headwinds that the cryptocurrency sector has endured over the course of the last year.
ETH smart contracts
According to the “Q4’22 State of Web3” report that was published by blockchain software and development company Alchemy, one of these key indicators is the number of smart contracts that have been deployed on the Ethereum mainnet. This number increased by 293% when compared to 2021, reaching rates that were comparable to the peaks of the previous year.
Remarkably, this peak of activity occurred in the fourth quarter of 2022, coinciding with the collapse of FTX, which caused significant capital outflows across the industry’s main exchanges.
Per the findings of the study, the number of operational smart contracts in the fourth quarter of 2022 increased by an astounding 453% over the previous quarter to reach an impressive 4.6 million.
The transition that Ethereum made in September 2022 from proof-of-work (PoW) to proof-of-stake (PoS) led to a surge in interest in staking on the part of a number of different stakeholders, including institutions.
Finally The Ethereum network will also undergo another significant upgrade in the form of its Shanghai update in March 2023. The key points include a drop in the gas fee for layers 2 solutions, which has the potential to enable Ethereum usage post-Shanghai both quicker and more cost-effective.
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