Investors have exploded in Ethereum [ETH] performance since a lot has been talked about merging. The main point of interest is to assess whether demand for the network or utility will deteriorate, return to normal, or rise to new peaks.
Here is the AMBCrypto price prediction for Ethereum [ETH] For 2022-2023
Ethereum’s performance over the past few weeks has been enough to give a rough idea of how the network is doing. According to a recent Glassnode analysis, ETH has reached a new all-time high for ETH total value in ETH 2.0 deposit contracts. According to the analysis, the value at the time of writing is 14.78 million ETH.
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– glassnode alerts (glassnodealerts) November 6, 2022
This observation indicates that the interest of Ethereum in DeFi has seen a significant increase. Moreover, many other observations showed a similar result. For example, the supply of ETH trapped in smart contracts reached a new monthly high of 28.04%.
For context, the total supply trapped in DeFi fell to 25.3% at the height of the consolidation. Similarly, the total value booked in DeFi has seen a sharp increase in the past two weeks. It grew from a monthly low of $71.55 billion in October to more than $80.2 billion this week.
The recent bullish wave contributed significantly to the amount of ETH trapped in DeFi in ETH 2.0. A sharp rise in new deposits for ETH 2.0 was also observed at the beginning of the week. However, the rate of new deposits declined, indicating a waning bullish momentum.
It’s not bad here…
Regardless of the drop in the rate at which new ETH 2.0 deposits were occurring, other metrics showed a positive result. It can be concluded that network utility and demand for ETH has resumed. ETH has also increased in value especially in the past two weeks. Although it had something to do with the crypto market in general. However, organic demand may have contributed to the ETH rally.
In addition, an increase in the relative strength of ETH has been observed over the past two weeks. More importantly, the price managed to recover above $1600 and hit $1620 at press time.
ETH has shown a convergence to the upside for the past two weeks and the same theme continues this week. This was accompanied by limited selling pressure. This may also have something to do with the fact that ETH is not yet overbought and is relatively close to its lower range.
Can a recovering Ethereum request bring in more Ethereum?
The high demand for ETH in the DeFi environment was already good news for crypto investors. She confirmed that the network was able to recover well after the merger. These observations could help ETH avoid a sharp price drop in the short term and favor Ethereum growth. However, this is not necessarily a guarantee as the retail market still has the largest impact on the demand for Ethereum.