This Is When Ethereum (ETH) Price Will Hit $6,100 Level
In the past few days, altcoins have notably increased after holding back during the weekend. For weeks bulls have struggled to push Ethereum above $3000 and even though it neared it a few times currency couldn’t cross $3000.
But this changed a few days ago when the second-largest cryptocurrency spiked above this level and has remained at this level since then. At press time Ethereum has surged by 3.14% trading at $3,150.
Ethereum Price Analysis
ETH price surpassed the $3,080 resistance. The largest altcoin also climbed above the $3,170, it seems that Ethereum will continue its rally towards $3,220.
Further, If ETH starts a downside correction, the price might find support at $3,080. The next major support is near the $3,050 level, However, if bulls fail to remain intact the price might test the $3,000 support zone.
What Next For ETH Price?
As per an analyst at Bloomberg, Ethereum price might hit $6,100. There are several reasons that are pushing Ethereum. One is the merge between the executive layer & consensus layer. This merge will allow users to stake Ethereum tokens & earn income. Around 30% of ETH transaction fees will be distributed among stakers.
However, if the demand for Ethereum increases, there will be an increase in fees and higher payouts. At present, the Ethereum network is about to generate $12.7 billion in fees in 2022.
Crypto quant hedge fund owner Ryan Allis explains that each Ethereum transaction has a fee & in January 2022 total fees even surpassed $1.3 billion.
The fee structure is divided into base fee & tip fee. Here 10% of the tip fee is received by the miner whereas the base fee gets burned and reduces the supply of ETH tokens. On March 23, 2022, around $10.5 million worth of ETH tokens were burnt.
Is ETH Still A Risky Investment ?
While these developments are worth taking a look at, investments in digital currencies are always risky. Anytime any of 18,000 cryptocurrencies may replace Ethereum.
For instance, Blockchain networks such as Solana, Avalanche & Terra are in high demand in the last 15 months. Additionally, once Ethereum 2 is launched, the majority of the transactions can shift to this and reduce Ethereum demand.