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Ethereum's Deflationary Model and Bullish Continuation Pattern Could Boost ETH Price by 80%

Ethereum's deflationary model, which has resulted in a negative supply rate since early 2023, could potentially boost the value of its token. The platform's fee-burning mechanism, introduced through the EIP-1559 upgrade, has made ETH deflationary.

The current supply rate means that Ethereum is burning more tokens than it is creating, and if this continues, the total circulating supply of ETH could start declining around May 2024.

Additionally, ETH price has formed a bullish continuation pattern called the 'Bull Flag', which could potentially result in an 80% price increase if the pattern is confirmed. However, Ethereum bulls have failed to move above the immediate resistance level near $1,900, and breaking below the EMA trendlines could cause the Ether price to drop to its support level near $1,816.

Ethereum Ethereum $3,324.11
-4.83%
Ethereum
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