Ethereum's Supply Trends: Analysis and Future Outlook

IconCryptoNewsTerminal Staff19 Jul, 2024

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Ethereum's Supply Trends: Analysis and Future Outlook

Benjamin Cowen, a well-known cryptocurrency trader, analyzed the supply dynamics of Ethereum (ETH) and offered insights into its future price trajectory. Cowen observed that if the ETH supply increases by roughly 60,000 ETH per month, similar to the levels seen after April, it could potentially return to the price levels observed during The Merge (transition to Proof-of-Stake) in December. Following The Merge, ETH demonstrated deflationary characteristics, with more ETH being burned than issued, resulting in a supply decrease of approximately 455,000 ETH until April this year. However, the supply has since increased by around 150,000 ETH since April. Cowen expressed cautious optimism regarding ETH's long-term price potential, suggesting that it could trade higher than its current price in a year and a half. However, he anticipates the possibility of a short-term decline in the next 3 to 6 months. Overall, Cowen's analysis provides valuable insights into the interplay between ETH's supply and price dynamics, helping market participants make informed decisions. By considering both historical data and current market conditions, Cowen's projections offer a comprehensive perspective on Ethereum's potential trajectory.

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