Ethereum Price Prediction as CFTC Chief Behnam Again Calls ETH a Commodity – Can ETH Overtake Bitcoin?

On a day when the cryptocurrency market appears to have recovered from the anxieties brought on by the CFTC accusing Binance of a number of compliance violations, the price of Ethereum has increased by 5.5% in the last 24 hours.

ETH has increased by 11% over the past 30 days and by 52% overall since the year’s start, thanks in part to the news that CFTC Chairman Rostin Behman reiterated his position on the coin’s status as a commodity yesterday.

This statement from the head of the CFTC has served to highlight the relative safety of investing in ETH, with the token’s rock-solid fundamentals also helping it to surpass most of the top 100 in the recent weeks and months. At a time when exchanges, as well as some token issuers, are facing legal action.

Furthermore, with the Shanghai upgrade scheduled for April 12, it may experience further gains in the not-too-distant future, with institutions may be lined up to participate in ETH staking.

Ethereum Price Prediction as CFTC Chief Behnam Again Calls ETH a Commodity – Can ETH Overtake Bitcoin?

ETH’s signs are still pointing to the coin’s current surge having some room to run, despite the fact that it has been increasing regularly for most of the year (so far).

Its relative strength indicator (purple), which started March close to 30, is set to surpass 60, indicating a pickup in buying enthusiasm.

In comparison to the 200-day average (blue), ETH’s 30-day moving average (red) also doesn’t appear to be slowing down any time soon, which is encouraging for future increases.

Moreover, if the market doesn’t see any additional regulatory shocks, ETH has a very good possibility of reaching $1,900 in the near future based only on its current pace.

However, given that Coinbase is expected to face legal action from the SEC and the aforementioned decision by the CFTC to charge Binance with a number of alleged wrongdoings, this is currently a genuine possibility.

The aforementioned statements from Behnam, however, imply that Ethereum itself is immune to any governmental action.

However, Ethereum’s fundamentals continue to be enviably strong, and its future indicates that additional increases may be forthcoming.

The crucial Shanghai update is currently active on the Goerli testnet, with a complete rollout scheduled for release in only a few weeks.

The ability to withdraw staked ETH (including staking rewards) will be made possible by Shanghai, which is expected to boost ETH bullishness insofar as it completes the upgrading process started with last September’s Merge.

Sure, some have asserted that the upgrade will increase selling pressure, but this is quite improbable.

The number of complete withdrawals that can be executed in a single day is restricted by the way that Ethereum’s staking mechanism was created by developers.

This restriction is currently set at 1,575 complete withdrawals each day, with a total validator count of between 458,752 and 524,288 as of the time of writing.

Also, many Ethereum validators will choose to wait before unstaking because a sizable number of them are actually sitting on a loss (and presumably selling).

All in all, Shanghai is favourable for Ethereum, and some analysts predict that it will encourage more staking, particularly from institutional investors.

This includes JPMorgan analyst Nikolaos Panigirtzoglou, who projected in a research report released in February that after Shanghai is finished, Ethereum’s staking ratio will increase to 60%.

If accurate, this would imply that roughly 60% of the circulating supply of ETH would be locked up by staking, increasing purchasing pressure on the coin’s price.

The fact that ETH has turned into a semi-deflationary token after the Merge and EIP 1559, with its protocol now burning more ETH than it issues during busy periods, is boosting this buying pressure (and Ethereum is becoming increasingly busy with each passing month).

Due to this, there is a good likelihood that ETH will surpass $2,000 in the coming months. In the event of a more optimistic market, ETH may potentially approach $3,000 by the end of 2023.

Next year, a return to the current all-time high price of $4,878 may be feasible, which would put ETH ahead of BTC in terms of percentage gains.

Alternatives to Ethereum

Given its current upward momentum and good fundamentals, ETH continues to be a highly powerful cryptocurrency.

It is not the only coin with potential on the market, as a number of more recent altcoins also forecast above-average returns in the medium and long term.

The top 15 cryptocurrencies for 2023 have been compiled by the Cryptonews Industry Talk team after research into these coins, each of which has promising short- and long-term prospects.

The addition of new altcoins and ICO projects to this list occurs often.

The success of Ethereum and its creator, Vitalik Buterin, serves as a testament to the power of cryptocurrencies and their potential to transform the world of finance.

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