Pseudonymous Coin Bureau host Guy is expressing bullish sentiment toward the leading smart contract platform Ethereum (ETH).
Guy tells his 2.21 million YouTube subscribers that Ethereum is likely to see a higher price this year after rallying by over 55% from its 2022 low.
According to the popular crypto analyst, ETH’s deflationary nature, brought about by its switch to a proof-of-stake consensus mechanism last year, could potentially trigger a new record high for the second-largest digital asset by market cap during the next bull cycle.
“I think it’s likely we will see a higher ETH price by the end of the year. And in the throes of the next bull run, it seems entirely realistic that deflation should force ETH above its all-time highs.”
Ethereum, which hit an all-time high of around $4,900 in November of 2021, is trading for $1,575 at time of writing.
On the risks that Ethereum faces, Guy says,
“There are a number of risks that lie ahead [for Ethereum].
Firstly, there’s the general crypto and macro environment. As impressive as Ethereum’s upgrades are, they won’t move the price if the broader environment is in the toilet. Although markets have improved more recently, I think it’s a bit premature to expect this rally to continue unabated.
There are broader concerns around ETH’s regulatory status too. While I think that a security designation is unlikely, it’s a tail risk we have to account for.
And another tail risk is of course centralization…
I’m also not oblivious to the fact that Ethereum has competition from other layer-1s. Many are well-funded and are growing out their ecosystems.”
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