ethereum Supporter’s Confident Stance

On November 15th, @sassal0x, a vocal ethereum supporter who identifies as an independent educator and angel investor, expressed confidence in ethereum‘s prospects. He believes that ethereum has solid fundamentals, making it a better option for long-term value accrual compared to other cryptocurrencies, including bitcoin (BTC) and DeFi projects such as Uniswap and Aave.

Price Movement and Uptrend for ethereum

ethereum is currently the second most valuable cryptocurrency by market capitalization and is trading above the $2,000 level. Despite experiencing a significant drop in 2022 due to the collapse of FTX, the defunct crypto exchange, ETH has been on an uptrend, more than doubling from its 2022 lows.

price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView” width=”1233″ height=”592″/>
ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView

The immediate support level for ethereum is at $2,000. The current price is trending within a bullish bar from November 9, indicating a positive momentum. However, for the uptrend to continue, there needs to be a solid close above $2,100 and November 2023 highs.

Debate Over ETH as Ultra Sound Money

Despite the optimism in the crypto and ethereum communities, ETH bulls have been unable to breach the resistance level. Many expect ethereum to move higher as sentiment improves, partly due to its gradual evolution towards becoming “ultrasound money.”

As of November 15, the status of ethereum as “ultrasound money” remains a topic of debate. Theoretically, once ethereum‘s burning rate exceeds inflation, the coin becomes deflationary, making it “scarce money” and more desirable.

Over 3 million <a href=ETH burned | Source: Ultra Sound Money” width=”1024″ height=”350″ srcset=” 1114w, 640w, 768w, 980w, 750w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>
Over 3 million ETH burned | Source: Ultra Sound Money

Following the implementation of EIP-1559, which introduced a burning mechanism to destroy part of gas fees, over 3 million ETH has been burned. However, the burn rate has not been enough to make ethereum ultrasound due to higher annual inflation.

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ETH burning may accelerate as the market recovers, particularly with increased interest in the DeFi and NFT sectors. The extended bear market led to a decrease in DeFi activity. However, as the market sentiment improves, the appeal of ethereum could strengthen.

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By Team