ETH price has been hovering around the $1,800 mark for a while now. As of this writing, its price is $1,831, up by 1.40% since yesterday, according to reports.
This fluctuation has left many questioning what the future holds for the token. Many Ethereum bulls are therefore keeping watch to see how it plays out.
Due to the crypto's price lingering, its annualized volatility based on the last 30 days implies price fluctuations of simply 23%. For reference, the Nasdaq's 30-day volatility has averaged a level of 20% throughout 2023 per market data.
Ethereum's 30-day volatility set a new all-time low this week. It points to a relatively stable price level of the token and slight price fluctuation over those past 30 days.
The Ethereum volatility index is a measure of historical volatility based on previous prices. The latest 30-day estimate stands at 1.33%.
The Ethereum Volatility Index. Source: BuyBitcoin
Furthermore, despite the market slide and its lack of price action, Ether has performed better than the majority of other crypto assets – including Bitcoin – over the last past four weeks. The indicator readings from the daily time frame indicate that the former will continue faring better than the latter.
This is because, firstly, the wave count indicates that a bottom has been reached. By using the Elliot Wave theory, technical experts scrutinize long-term price patterns alongside the investor psyche to decide the trend's direction.
Secondly, the daily RSI has led to a bullish trend reversal – when a price decrease doesn't affect that momentum. The indicator is currently above 50, which is a bullish sign.
Regardless of this bullish price forecast, a drop below the wave C low at ₿0.062 will signify that the trend remains bearish. That being said, a decrease to the ₿0.058 support area seems like the most probable option.
As the recent price volatility continues, investors are on the lookout for what could be the next major driver of crypto.
After the Ethereum Merge, Shapella upgrade, and Ethereum validators, their devs have taken to a new project — Cancun-Deneb. Cancun is the upgrade for the execution layer, with Deneb being the upgrade for the consensus layer.
The prospective upgrade to the network is to improve scalability. EIP-4844, also referred to as proto-dank sharding, is an important piece of the puzzle as it aims to build a rollup-centric roadmap to improve data availability for roll-ups and lead to a reduction in gas fees on L2 rollups.
Proto-dank sharding is predicted to reduce transaction fees on L2s by 10x, at least. It is also expected to decrease the cost of data from roll-ups to L1.
The EIP-48844 update is expected to be finished in Q4 of 2023. Time will tell how it fares.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.