Ethereum Price Preview: May 31 – June 6
In last week’s piece, we focused on market sentiment and the factors driving down the price of ETH. Today, we’ll examine the latest progress made in terms of adoption and development of the Ethereum network.
Gamestop’s NFT Project
Gamestop launched a website announcing that it will be hiring engineers, designers, gamers, and other staff members to develop an NFT platform.
The gaming giant made world headlines earlier this year when the Reddit community r/WallStreetBets implemented a short squeeze on several hedge funds, causing Melvin Capital to require a bailout. The squeeze, in which traders went long on GME stock to trigger liquidations in shorts, was the first of its kind by retail traders, many of whom used the Robinhood app to make trades.
Robinhood later halted the trade of GME and DOGE, placing GME stock on the radar of the crypto community and causing many to view GME as a way of combating Wall Street’s monopoly on trading.
This surge in investment, the newfound connection between Gamestop and crypto, and the use case for NFTs in the video game industry for in-game assets have led to the launch of a new upcoming NFT platform or project that could make major inroads towards mainstream NFT adoption.
ETH Trading Activity
ETH daily trading volume hit an all-time high above $20 billion last week after months of surpassing the trading volume of BTC.
Ethereum has far outperformed Bitcoin in terms of price appreciation this year, and many analysts that the #2 cryptocurrency is just getting started. While Bitcoin has made major progress in terms of corporate adoption recently, its quite limited in its uses compared to Ethereum which fuels the entire DeFi industry.
A leaked report from Goldman Sachs indicates that the banking giant believes Ethereum now has a “high chance” of surpassing Bitcoin in terms of price, given the huge ecosystem built around ETH and the ongoing progress made in terms of network development.
Ethereum is very close to moving away from the highly-criticized Proof of Work consensus method which consumes huge amounts of electricity. The protocol designed to improve Ethereum, EIP-1559, is still in the pipeline and will reduce network energy consumption while burning ETH and creating a deflationary effect on the currency supply similar to that of BItcoin.
In terms of short-term price movement, ETH is currently at a crossroads, establishing resistance at the 50-day SMA following a rebound from the lows seen on May 23 with support seen at the highs found on February 20 of $2,042.
The path for a swift price rally is not immediately clear, and it’s possible that more consolidation and price volatility will occur before we see any further decisive price movements. The Santiment 30-day Market Value Realized Value (MVRV) metric indicates that ETH is currently undervalued. However, the 30-period moving average remains in overvalued territory, with significant resistance ahead.
In other crypto news, Paypal will be allowing crypto customers to withdraw their crypto, completely changing the company’s digital asset product offering.
Where before, PayPal was simply allowing users to buy crypto price action, users will now be able to use the world’s largest payment provider to buy crypto and withdraw it to private wallets, a major step forward in mainstream adoption.
Apple has also expressed interest in partnering with crypto projects to provide instant payment solutions.
The Synopsis 2021 digital summit will take place online from June 01 to June 05, with over 60 speakers in attendance. Discussion will focus on trends in the crypto industry such as DeFi and NFTs and the comparison between Ethereum 2.0 and Binance Smart Chain.
Speakers include representatives from Aave, Algorand, Binance Russia, and many more.
The Bitcoin 2021 or Bitcoin Miami conference takes place from June 04 – June 05 in Miami. The conference is one of the largest events of the year, featuring speakers like former U.S. representative Ron Paul, Microstrategy CEO Michael Saylor, U.S. senator Cynthia Lummis, Twitter CEO Jack Dorsey, early crypto developer and computer scientist Nick Szabo, and more.
The conference will focus on topics like Picturing The Hyperbitcoinized World, How To Activate Taproot And Future Soft Forks, The History of Money, and other investment and tech-related topics.