Quoting data on the chain, ETH is trading much lower than the reasonable price. Therefore, some analysts believe that Ethereum is being seriously low-cost.
Will the ETH price increase 50%?
Founder of Capitalos Capital, Ryan Sean Adams was one of those who had co-perspectives. In one of his posts posted on bankless. Substack, he shared an image to strengthen his perspective:
Looking at the chart above, you can completely recognize that one thing is the ETH price and the fee that the user has to pay for the transaction to be treated with correlation for the last 4 years.
And in recent weeks, the charge has skyrocketed again and if this correlation is kept firmly, there is a huge possibility that the second cryptocurrency price ranks on the first Coinmarketcap will increase by at least 50% value.
Special factors to increase Price: "ETH 2.0"
The Ethereum 2.0 Blockchain upgrade is expected to be launched by the end of the year (maybe 7 or 8 months) will be another special factor that helps the price rise strongly.
According to Prof. Adam Cochran, ETH 2.0 has the ability to help the ETH market witness major changes for three core reasons:
1. The introduction of staking will strongly promote the demand for ETH by small investors and organizations. They can staking their money to earn interest from investments
2. Staking will reduce the inflation. Assuming the need for growth, inflation decreases (acting as supply) will help to increase the price
3. Due to the technical advancements that the ETH 2.0 delivers, the demand for cryptocurrencies will significantly increase.
* The above comments are based on the author's personal opinion, which is not considered investment recommendation *