Will Ethereum Start Climbing Following The 16 Month Support Line?

There is no exciting new developments and the network usage is low, so is the gas fee! Gas is literarily back to the pre-bull run of 2020 prices!

Also, the revenue has dropped to its lowest since 2020. I do not know the figures, as I do not mine Ethereum, but multiple sources say the the revenue dropped drastically! 

Let's have a look at the chart!

So the lowest point after the run was in June 2022 that is nearly 1,5 year ago and now Ethereum is literally at the point of upwards sloping support line.

The thing is that there is nothing that would suggest the Ethereum price to grow, as I am not really sure what would stimulate the price. If the price and activity goes higher so will the ETH gas price. There is plenty of layer 2 now and many users have migrated to them. 

Also, the chart seems to display some kind of weird head and shoulders with two heads - it is still a valid pattern and it is a bearish pattern!

If confirmed the price target for this pattern is around $1000 that is close to the bear market low of $880

We all like Ethereum but from financial point of view it looks like it is not a good investment at the moment. We do have that support line, but there needs to be some strong positive development for this line to hold! 

There is "Danksharding" in development but according to crypto com implementing full functionality can take several years!

Expected Timeline

While the complete implementation of Danksharding may take several years, Proto-Danksharding could arrive sooner. EIP-4844 is in a mature stage, with agreed-upon specifications and prototypes already implemented on the client side. After the successful conclusion of the Shanghai update, these changes could be implemented in a public testnet and refined before being rolled out. Some experts believe Ethereum could gain sharding capabilities by the end of 2023 or early in 2024.

Judging by the estimated timeline and actual delivery of Ethereum upgrades I wouldn't count on 2024 for anything significant to happen! That is the reason there is so many Layer 2 chains and developers build on those, of course any app on EVM is compatible and can be easily migrated from one to the other, but the question is where do the users go?

Lastly, I think the only thing that can keep the Ethereum price high is Bitcoin. If BTC rallies then there is no need for a development in Ethereum - everything goes up with Bitcoin!

All The Best,

Aventurine