A crypto community with 78 percent historical accuracy sets the Ethereum price for March 31, 2022. The second-ranked cryptocurrency, Ethereum, continues to experience market volatility as investors wait for the next breakout, with the asset holding a $2,500 support level. Amid the volatility, a CoinMarketCap crypto community with 78% historical accuracy predicts that the cryptocurrency will trade at an average of $3,621 by the end of March 2022.
Here are the March levels for Ethereum
The forecast is based on votes from 49,299 community members, with the forecast representing over 40% growth from Ethereum’s current price of $2,550. Overall, the forecast is bullish for Ethereum as the asset aims to push towards its all-time high. As you can watch on Somanews, Ethereum’s current value represents a drop of over 1% in the last 24 hours, while the asset has dropped almost 3% over the previous seven days. Notably, ETH entered the weekend trading with support at $2,550, a position it had held in the previous few sessions. Ethereum price has tested the support level at least three times in 2022, making it a key level for trading. Overall, Ethereum’s recent price action presented a buying opportunity. Constant and renewed buying pressure could push Ethereum to an all-time high above $3,000.
Impact of PoS migration on forecasts
The rise around Ethereum by the crypto community comes amid ongoing network upgrades to achieve full proof-of-stake (PoS) status. Proponents expect the PoS transition to positively impact the price of Ethereum by potentially reducing the cost of transactions on the network, which remains the biggest factor. Specifically, the number of transactions in Ethereum depends on gas prices. Therefore, if gas prices fall, the market can expect a pump in smaller transactions, increasing grid usage and possibly higher prices. By March 9, 2022, Ethereum recorded a decline in transaction gas fees to hit a six-month low.
At the same time, the market should watch out for ‘Ethereum killers’ like Solana and Avalanche, who are already working on proof-of-stake mechanisms. The magnitude of this rivalry is highlighted in a recent report by data provider Staking Rewards, which shows that the total staked value of Terra’s native token LUNA is over $26 billion. The amount is higher than Ethereum’s $24 billion, with Solana topping at least $32 billion. Currently, Ethereum’s dominance over these competitors is due to the network’s role in powering decentralized finance (DeFi) solutions.