Ethereum Could be Headed for $3,750, Maybe Higher – Ethereum Weekly

Ether appears to have completely bounced back following last week's double-digit correction. The native token on Ethereum has enjoyed trading in the green the last couple of days and is currently sitting at $3,450 – up more than 3% over the last seven days.

Meanwhile, a lot has happened in and around Ethereum this week. Notably, the network's co-founder Vitalik Buterin made TIME's list of The 100 Most Influential People of 2021 under innovators. Here are the other major recent highlights:

AMC Theatres set to start accepting ETH payments

On Wednesday this week, AMC's chief executive Adam Aron posted a tweet confirming that the movie theatre chain would introduce support for ETH payments. Aron stated that alongside Ether, the giant entertainment company would also accept Litecoin and Bitcoin Cash before the end of the year as part of the new policy. AMC had, over a month ago, revealed that it would allow its customers to pay in the flagship cryptocurrency Bitcoin.

“You likely know @AMCTheatres has announced we will accept Bitcoin for online ticket and concession payments by year-end 2021. I can confirm today that when we do so, we also expect that we similarly will accept Ethereum, Litecoin and Bitcoin Cash.” he wrote.

Over 312,000 Ether has been burnt since EIP 1559 implementation

It has been about six weeks since the London upgrade was completed – the highly anticipated hard fork that sought to implement the Ethereum Improvement Proposal-1559. Though the upgrade faced resistance from some in the Ethereum community, its implementation was still successfully.

The EIP-1559, which was a massive bone of contention, restructured the fee mechanism on the network. One of the outcomes was a resolution that part of the network's fee would be burnt. According to data from Dune Analytics, more than 312,000 ether translating to over $1 billion at the current prices ($3,452) have been burned in this period. Peer-to-peer transactions, decentralized finance protocols and non-fungible token marketplaces account for the bulk of this figure.

Several pointers suggest an ETH rally is around the corner

Over the last seven days, Ethereum has covered significant ground, peaking at $3,673. During this period, the lowest point of support has consistently been above $3,100. Considering Ether attempted to breach the $4,000 price tag at the start of the month before slumping a few days later, the possibility of resuming another uptrend is far from zero.

Ethereum fees have also stabilized following a steep upswing to almost $60 last week. The average transaction fees on the network have not eclipsed $30 since Friday. Earlier this week, ARK Invest's chief executive Cathie Wood revealed that her firm was bullish on Ethereum despite having a Bitcoin preference.

Wood, a vocal Bitcoin proponent, attributed the interest to the evolution of Ethereum over the last few months. She particularly cited the transition to a proof of stake mechanism. Though this doesn't come as news to the Ethereum community, it could be significant in allaying any existing doubts and concerns harbored by new investors.

Ethereum performance in the market

Ethereum enjoyed the best run on Thursday, building upon momentum from the previous day. The curve has, however, assumed a descending channel following a correction late on the same day and early today. The token is currently changing hand at $3,452, having lost 4.8% in the last 24 hours, according to data from coinmarketcap. During this period, Ethereum has posted a high and low of $3,642 and $3,413.20, respectively.

The token appeared to be consolidating gains at the start of the day, but the outlook has been different (downside correction) as hours have gone by. The odds of Ethereum moving into the weekend while trading on the red are high based on the 24-hour chart. On the bright side, there is a lot of support above $3,100, making it hard for bears to pull further below.

Still, ETH/USD could see a minor bounce if it manages to avoid the sink below $3,400. If the pair manages to climb up to its previous range of between $3,500 and $3,600, it could eye more gains. There is a possibility this creates room for propulsion to $3,750 and higher to $4,000, but that will require strong upside momentum to beat several resistance levels in between.