On March 10th, the price of ETH reached $1400, in fact, it was a very cheap deal, and the cryptocurrency rose 27.1% as of March 21. But the three reasons for the rise in fulcrum prices, including relevance to energy stocks, their growing aggregate locking and the representative economic development of deflation, show that access to the $2000 road is easy.

There are many explanations for the main reason why Ether has fallen by 19.4% in the past six months. The etheric Beijing hard fork update was extended from March to early April. After downtown Shanghai, the etheric route map includes "surge", "edge", "elimination" and "indulgence" upgrades. In real life, the longer it takes to complete this scalable intermediate process, the more likely it is that the market competition Internet will show high efficiency, which may create core competitiveness.

Another hidden concern in the minds of investors is the true probability of price harm when the verifier can finally open his 32 ETH savings after Shapera's fork ends. Although it is impossible to predict how many of the 16 million ETH in the Beacon drive chain will be sold on the market at this stage. There is a compelling reason to switch to the liquidity betting service platform because it can use liquidity bet derivatives in other fragmented financial networks without giving up its bet return.

Traders were able to construct a narrative based on regulatory uncertainties, especially after Gamo Gensler, the current chairman of the Securities and Exchange Commission (SEC), issued a statement in September 2022 that equity proof that cryptocurrencies could be regulated by securities laws. In February 2023, SEC reached an agreement to drive the cryptocurrency trading center Kraken to stop providing data encryption chips to US users, and the trading center also paid 30 million US dollars back.

Relevance and technology companies with application as the main content

To understand why Ether rose 15% in less than three days after briefly falling below $1400 on march 10th, traders must move from price-based interpretation to total market capitalization. On March 10th, the total market capitalization of the ether closed at $175 billion.

What Oracle, SAP, and Salesforce have in common with Etherum is that their app enables users to access shared cloud computing servers. This is a far cry from chip makers Nvidia graphics and tsmc, infrastructure service providers Microsoft and Oracle, and their machine-dependent technology companies, Apple and Cisco.

The total market capitalization of Oracle, Salesforce and SAP is $233 billion, $188 billion and $149 billion respectively, which is very similar to that of Ether. In the final analysis, centralized and decentralized solutions allow companies to integrate their proprietary software so that all third parties and relevant departments can consult, resolve, share and store data.

Taking fully into account the data of the past six months, the price performance of Ether is mainly similar to that of these companies. If the correlation between the use of energy stocks and Ether prices is still reasonable, it would be unreasonable to fall below $1400 on March 10.

The total amount of ETH is locked at $30 billion.

The total locked use value (TVL) of the Ethernet Internet was $24 billion on November 24, 2022, and increased by 30% to more than $30 billion by March 21, 2023. Therefore, if there are no other factors affecting the price, it can be expected that the price will rise by 30% within six months here. But that was not the case on March 10th, when the Ether buy and sell price was $1400, up only 8% from June, indicating a derailment between the value in the Internet blockchain smart contract and the ETH price.

The 22 per cent increase between the 30 per cent rise in TVL and the 8 per cent increase in ETH prices means that the actual value of Ether should be close to $1700, which is the level achieved three days later on March 13, 2023. This simple model eliminates many independent variables that harm supply and demand and the resulting price level, but it does provide an indication based on historical records.

The deflationary system of the ether has gone all out to bring it into full play

On November 10, 2021, the price of the ether was $4869, setting an all-time high for cryptocurrency. However, great changes have taken place since then, including incineration of 3016607 ETH under ether improvement proposal 1559. This is equivalent to an additional $5.4 billion in assets, increasing availability and curbing price rises.

At this stage, the buying and selling price of bitcoin, the market leader, is gradually falling 59 per cent from an all-time high of $69000. This does not necessarily mean that the ether should be smaller than bitcoin, but it shows that the current discount level of ETH is $1780. The deflationary standard is that the ether, known as scarce digital money, flattened the road, especially when there is hope in the inflationary phase of the world economy.