- Leading smart contract platform Ethereum (ETH) is generating bullish sentiment in the community.
- Ethereum is likely to trade higher this year after recovering more than 55% from its 2022 low.
- According to a popular analyst, the deflationary nature of ETH could trigger a new high during the next bull cycle.
Coin Bureau host with the pseudonym Guy, is expressing bullish sentiment towards the leading smart contract platform Ethereum (ETH).
Guy told his 2.21 million YouTube subscribers that Ethereum is likely to trade at a higher price this year after recovering more than 55% from its 2022 low.
According to the popular crypto analyst, the deflationary nature of ETH, triggered by its switch to proof-of-stake consensus protocol last year, could trigger a new high for the second digital asset by market cap during the next bull cycle.
“I think it is likely that we will see a higher ETH price later in the year. And in the throes of the next bull cycle, it seems entirely realistic that deflation will push ETH past its all-time highs.”
Ethereum reached an all-time high of around $4,900 in November 2021. It is currently trading at around $1,591 USD. On the risks that Ethereum faces, Guy says, “There are a number of risks that lie ahead. ” Adding:
First of all, there is the general environment of cryptocurrencies and macroeconomics. As impressive as Ethereum’s improvements are, they won’t move the price if the overall environment is rock bottom. Although markets have improved recently, it is a bit premature to expect this rally to continue unabated. There are also concerns surrounding the regulatory status of ETH. While I think a security designation is unlikely, it’s a risk we need to be aware of. And another risk is of course centralization… I am not oblivious to the fact that Ethereum has competition from other layer-1s. Many are well financed and are growing their ecosystems.”
