Crypto Industry News:
Ethereum, one of the main blockchain platforms and the second largest cryptocurrency by market capitalization, has just reached a historic milestone; exceeded USD 10 billion in cumulative revenue since the project's inception in 2015. This achievement left behind even technology giants such as Microsoft and Adobe, which took 19 and 20 years, respectively, to achieve similar levels of revenue. Alphabet Inc., Google's parent company, reached this level at a similar pace to Vitalik Buterin's child.
Ethereum's rapid jump into the club of companies that have achieved around $10 billion in revenues is attributed to its diverse sources of income and huge activity on the network. The platform's revenues are generated mainly from transaction fees ("gas") that are charged for various activities in the Ethereum ecosystem. These activities include, among others: using decentralized finance (DeFi) applications, creating, mining and trading non-fungible tokens (NFTs), and cryptocurrency payments. In short: the more traffic there is on the network, the more expensive gas is and the more revenue there is for the protocol, which then further develops the project, which increases traffic on the network, and so on.
Despite the recent decline in revenue, which shrank by more than 77% compared to the previous year due to uncertainty in the broad cryptocurrency market, forecasts for the future of the platform are promising, according to analysts. According to a valuation by investment firm VanEck, Ethereum network revenues could skyrocket from the current $2.6 billion per year to a staggering $51 billion by 2030 if adoption of the cryptocurrency continues to grow in line with current projections.
Technical Market Outlook:
The ETH/USD pair had bounced from the extremely oversold market conditions on the H4 time frame chart and made a new local high at the level of $1,626, but this spike up was quickly faded. Currently, the market consolidates in a narrow horizontal range located between the levels of $1,592 - $1,626. The intraday technical resistance is seen at the level of $1,626 (spike high) and the nearest technical support levels are located at $1,592 (last swing low). Please notice, the price is below the 50 and 100 MA on the H4 time frame chart already, so the bears are clearly in charge of the ETH market.
Weekly Pivot Points:
WR3 - $1,623
WR2 - $1,598
WR1 - $1,585
Weekly Pivot - $1,573
WS1 - $1,560
WS2 - $1,547
WS3 - $1,522
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.