CandleFocus

Ethereum supply shrinks, showing signs of an imminent rally as more ETH gets burned

Author: Content Editor
The senior researcher at OnchainHQ, Leon Waidmann, believes that Ethereum is on the brink of a rally due to its strong fundamentals. He points to Ethereum's deflationary mechanism and the burning of more ETH than is being issued as factors supporting an imminent surge in ETH's price. Waidmann argues that the reduced supply of ETH creates scarcity, which in turn drives up its price. He predicts that this trend will continue as the overall crypto market gains momentum. Waidmann also suggests that the price increase will attract more users, projects, and investors, leading to increased on-chain activities and more fees generated, further fueling the ETH price surge. The analyst sees this process as a self-sustaining cycle that will catalyze ETH's price even more. Despite a recent drop, with ETH trading at $3,149 and a 20% increase in the last seven days, Waidmann believes ETH is undervalued and that its price could rise. Additionally, it is noted that the Ethereum Foundation has sold ETH to fund key projects and maintain reserves.

Related News