Ethereum's price has seen a slight 0.03% increase over the past 24 hours, bringing it to $1,593.41 according to data analyzed on September 24, 2023. While not a major surge, this shows Ethereum's continued strength and resilience even during periods of low volatility.

Ethereum remains the second largest cryptocurrency by market capitalization at $191.60 billion. Its 24 hour trading volume of $1.36 billion also indicates strong investor interest and activity. Even though Ethereum has seen some declines over the past month and six months, down 4.36% and 9.06% respectively, its longer term trajectory still looks positive.

The 0.03% gain over the last day comes after a period of consolidation for Ethereum. Its price remained effectively unchanged over the past hour, while it posted losses of 2.39% and 4.36% over the past 7 days and month. However, zooming out to the bigger picture, Ethereum is still up substantially from its early 2022 lows below $1,000. This shows its long term uptrend remains intact.

What's Behind Ethereum's Recent Sideways Trading Pattern?

Ethereum's lack of clear direction over the past week can be attributed to a few key factors. Firstly, the entire cryptocurrency market has struggled to find momentum as macroeconomic uncertainties weigh. High inflation and rising interest rates have sent shockwaves through global financial markets, making investors more risk-averse.

Cryptocurrencies have fallen out of favor as speculative assets during this period of uncertainty. However, Ethereum has shown more resilience than smaller altcoins, highlighting its status as a relatively safe crypto asset.

Secondly, the scaling upgrade known as "The Merge" concluded over a month ago on September 15, 2022. This transition to proof-of-stake and ending of proof-of-work mining was touted as a monumental event for Ethereum. However, it has failed to kickstart a sustained Ethereum price rally so far.

Now that the upgrade is complete, there is less hype and anticipation driving Ethereum's price action. Investors and traders are waiting for further adoption and development on Ethereum to spur the next bullish cycle.

Ethereum Likely to See Stronger Momentum Moving Into 2023

While Ethereum may continue trading sideways for the remainder of 2022, its long term outlook moving into 2023 looks more bullish. Here are some of the key reasons why Ethereum could be primed to ultimately break out of its recent ranges:

• Improved scalability and lower transaction fees after The Merge make Ethereum more usable and attractive for decentralized apps (dapps) and developers. This should lead to higher activity and adoption.
• Upcoming upgrades like sharding in 2023 will further boost Ethereum's ability to process more transactions and support growth.
• Major companies like Meta are continuing to launch initiatives and ventures based on Ethereum, providing real-world utility.
• If inflation peaks and the macroeconomic climate stabilizes next year, cryptocurrencies like Ethereum are likely to benefit from increased risk appetite again.
• Ethereum holds first mover advantage in the smart contract platform and Web3 space, giving it an edge long term versus competitors.

With greater scalability and adoption on the horizon, Ethereum appears undervalued at current prices under $1,600. The next wave of crypto bull market mania could easily send it surging to new highs above $4,000. Patience is key, as Ethereum builds out its ecosystem and use cases.

Should You Buy Ethereum Heading Into 2023?

With Ethereum likely to strengthen over the long run but remain subdued short term, is now a good time to buy?

For long term investors who believe in Ethereum's technological potential, the current stabilized price below $1,600 could offer an attractive entry point before momentum picks up again. The data shows Ethereum is well positioned to capitalize on Web3 and decentralized finance trends over the next 3-5 years.

However, short term traders should exercise caution, as downside volatility remains a risk if the economy worsens. Cost dollar averaging into a long term Ethereum position reduces timing risks.

Ultimately, Ethereum should be viewed as a high upside but speculative investment still. Only allocate an amount you can comfortably afford to lose, and implement sound risk management strategies. The technicals make a bull case moving forward, but global macro uncertainty persists.

How Does Ethereum's DeFi Dominance Impact Its Price Outlook?

Ethereum's dominance in the decentralized finance (DeFi) space is a major long term tailwind for its price outlook. The vast majority of DeFi activities like lending, trading, and borrowing occur on Ethereum. As DeFi grows in usage and popularity, this drives visibility and demand for ETH.

Total value locked in DeFi hit over $150 billion in late 2021, when Ethereum prices hit an all-time high near $4,800. So Ethereum's price has a high correlation with DeFi's overall growth. If DeFi platforms continue innovating and onboarding users, they will need to buy ETH to participate.

However, Ethereum faces increasing competition from faster and cheaper layer 1 blockchains like Solana and layer 2 scaling solutions. DeFi may gradually become more multi-chain, limiting Ethereum's growth. But as the first mover, Ethereum remains the backbone of DeFi and prime beneficiary of its rise.

Does On-Chain Data Support an Ethereum Price Rebound?

Analyzing Ethereum's on-chain data provides insights into user activity and transaction trends that may foreshadow price moves. Key metrics paint a mixed picture on the potential for an Ethereum price rebound in the short term, but are more bullish long term.

On the bearish side, Ethereum transaction counts and active addresses have declined substantially from their 2021 peaks. This indicates less network usage and interest currently compared to Ethereum's last major bull run.

However, metrics like circulation and transaction fees are trending favorably. The percentage of ETH supply on exchanges is at just 13.5%, not far above the 2018 bear market lows. This signals holders are unwilling to sell and provides less overhead resistance. Average transaction fees are also near 2022 lows, showing improved network scalability.

So while on-chain activity has slowed in the short term, Ethereum holders remain committed for the long haul. As adoption picks up again, the supply dynamics favor a prolonged price rally. On-chain trends point to accumulation in preparation for Ethereum's next breakout surge.

Conclusion

In summary, while Ethereum has traded sideways in recent months after The Merge, its long term outlook remains promising. Fundamentals related to scalability, institutional adoption, and DeFi growth point to the likelihood of a 2023 price rebound. Current prices around $1,593 look appealing for long term investors before a bullish breakout. However, short term volatility linked to macroeconomic uncertainty warrants caution. Using dollar cost averaging can mitigate timing risks. Overall, Ethereum remains a top crypto asset for generating alpha over a multi-year timeframe.