Ethereum Price Analysis On-Chain Indicators Suggest 2-3x Gains in the Offing

Amid the ongoing Bitcoin bullish breakout, the ETHBTC pair has been holding a crucial support level and is ready to bounce back, thus indicating better times ahead for Ethereum and the altcoin industry.

Ethereum (ETH), a stable blockchain network with more than $29.6 billion in Total Value Locked (TVL) and over $67 billion in the stablecoins market capitalization, has significantly capitalized on the rising demand for web3 industry and digital assets around the world.

Having demonstrated deep liquidity underpinned by the vast ERC20 ecosystem and the robust NFT industry, Ethereum has continued to attract more institutional investors seeking to diversify their crypto portfolio from Bitcoin (BTC).

Furthermore, the Ethereum network can be described as sound money since the implementation of the Proof-of-Stake (POS) consensus mechanism, which has attracted more than 903k validators with over 28.8 million ETH staked, through the merge event and the Sharpella upgrade.

The Ethereum network has been deflationary since the EIP-1559, with more than 3.8 ETH already burned. Such developments have attracted more decentralized financial (DeFi) developers seeking to tap into the Ethereum Virtual Machine (EVM). According to on-chain data, the Ethereum network has more than 77.9 million non-zero addresses, with the average daily transactions amounting to about 1 million, double that of Bitcoin.

Ethereum co-founder Vitalik Buterin recently highlighted the need for the developers to continue working on the layer two scaling solution in a bid to ensure a sustainable adoption of the web3 industry and digital assets. Additionally, Buterin applauded the Ethereum team for remaining focused on the initial roadmap that did not change course throughout 2023.