Inevitably, the performance of open-source projects like Ethereum depends on the quality of participation and how technically sound developers are.
Funding for Ethereum Client Developers
Accordingly, how well this system receives ecosystem-wide support is critical in determining the trend of both development and infrastructural quality.
There is inflation in Ethereum where the extra coins minted go into development, supporting the realization of new products, improving core infrastructural services, and on-boarding talents by teams who directly provide towards the bottom line.
1/ A diverse execution-layer client ecosystem is at the heart of all that we’re building together.
— Ethereum (@ethereum) August 24, 2021
The announcement from Ethereum that Uniswap, Kraken, Lido Finance, Grants, Synthetix, and the Graph had each donated $250k to fund client developers, including Go Ethereum and Hyperledger Basu, is welcomed news once more, highlights the significance of quality and sound base.
Besides, it is a much-needed deviation considering the dominant discourse over the past few months have been more on ETH price performance and less talk of development and how to resolve scalability.
NFTs to Spearhead another ETH Rally
Meanwhile, analysts say NFTs are inevitably driving ETH prices, a sub-sector that is “getting started.” Together with activity from DeFi, the space is helping burn thousands of ETHs—worth millions—a development further cementing observers’ position on ETH’s valuation.
Friendly reminder: all of this NFT activity is also burning truck loads of ETH.
We're now at 82,500 ETH ($275 million) burned and EIP-1559 has only been live for 18 days.
ETH is so incredibly undervalued.
— Anthony Sassano 🦇🔊 (@sassal0x) August 24, 2021
As per Anthony Sassano, the fact that over $275 million of ETH has been destroyed since EIP-1559 activation makes ETH “incredibly bullish.”
Another technical analyst also supports this observation.
Hard to see all this NFT adoption happening without $ETH going to new highs this year.
The explosion reminds me of DeFi summer.
Am I missing something?
— The Crypto Dog📈 (@TheCryptoDog) August 24, 2021
He draws a similarity with the DeFi explosion of 2020, which saw ETH surge to over $4k. With the present adoption ongoing, it is near-inevitable for ETH to register new highs in upcoming sessions.
Ethereum Price Analysis
At the time of writing, ETH bulls are stuttering, struggling to break to new August 2021 highs.
Regardless of bearish attempts, Ethereum bulls are sensing an opportunity.
Presently, the coin is stable versus the USD, sinking five percent on the last trading day. Most interpret the consolidation to mean accumulation now that ETH/USD prices are within a bullish breakout pattern, clearing July 2021 highs and above $3.1k.
Technically, a close above $3.5k could see ETH bulls spark demand in a lift-off that may see the coin reclaim $4.3k in a buy trend continuation pattern. For this to pan out, the middle BB must hold, helping ETH bulls soak the rejection of higher highs reading from price action in the daily chart.
On the flip side, a break below the accumulation could slow down ambitious bulls as ETH may drop back to $2.9k.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
If you found this article interesting, here you can find more Ethereum News