- At the time of writing, ETH is trading at $2197, down 1.65% in the last 24 hours.
- If the price manages to go above $2251 level then it will likely test $2311 resistance level.
An ex-Ethereum adviser named Steven Nerayoff claims that the driving force to promote Ethereum always comes back to the lucrative gas fees. In a post on Twitter, Nerayoff made this claim and noted that when fees spike, a small group of powerful people, rather than the ordinary user, benefit. This is particularly true if ownership and mining are as concentrated as believed to be.
In the time after the Merge Event in September of 2022, an astonishing $2.5 billion worth of ETH has been burnt, according to an analysis of data. The current supply of Ethereum stands at 309,663 ETH, a level not seen in 18 months, according to Ultrasound Money.
When compared to the inflation that Ethereum had been experiencing before, this new phenomenon stands out. The burning of 1,195,238 ETH has indeed caused the asset to exhibit a deflationary movement. In addition, the asset’s value will be positively affected in the long run by that irreversible decrease in supply.
In contrast to the constant issuance of new Ether, the supply has remained deflationary, which bodes well for the prospect of future increases in the value and rarity of Ethereum.
Bulls Losing Grip
At the time of writing, ETH is trading at $2197, down 1.65% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is down 11.13%. The crypto market as a whole has been witnessing selling pressure.
If the price manages to go above $2251 level then it will likely test $2311 resistance level. Conversely if the price manages to go below $2153 level then it will likely test $2079 support level.
