Ethereum to Power Crypto Payments for 270 Million PayPal and Venmo Users

Ethereum Price Analysis:

Ethereum price fell 5% on Sept 11, as bulls failed to build on the the 11% gains recorded in the aftermath of dovish US NFP figures published on Sept 6. Recent media reports suggest that strategic partnership between Ethereum Name Service (ENS) payment giants could lift investor optimism.

Paypal, Venmo Partner  With ENS to Simplify Crypto Payments

Venmo and PayPal have taken another step in integrating cryptocurrency by partnering with Ethereum Name Service (ENS), allowing users to transfer crypto more easily.

From September 10, 2024, Venmo and PayPal users can now transfer cryptocurrency using Ethereum Name Service (ENS) names, according to a statement by ENS Labs.

This integration eliminates the complexity of traditional wallet addresses, allowing users to transfer crypto using simpler, personalized ENS names, such as “yourname.eth.”

The partnership is expected to reach over 270 million users in the United States alone, making it a milestone in broadening cryptocurrency adoption.

ENS functions as a nickname for blockchain addresses, reducing the risk of errors associated with long and complicated wallet addresses.

The integration will bring ENS naming capabilities to millions of users through Venmo, PayPal Mobile, and PayPal Web,

• Khori Whittaker, executive director of ENS Labs/

This development is seen as part of the broader push toward mass adoption of crypto, particularly on platforms that bridge the gap between Web2 payment services and decentralized finance (DeFi).

Marta Cura, director of business development at ENS Labs, stated, “Working with PayPal and Venmo allows us to reach those who are new to the space and those who prefer the familiarity of Web2 payment platforms.”

PayPal’s Active Role in Blockchain Could Push Ethereum Prices Higher

PayPal’s involvement in the blockchain industry is nothing new. The company recently launched its stablecoin, PayPal USD (PYUSD), which surpassed $1 billion in market capitalization, according to CoinMarketCap.

The stablecoin was launched on the Solana network and quickly gained traction through partnerships with Crypto.com, Phantom, and Paxos.

Given PayPal’s influence and its growing presence in the crypto space, analysts speculate that the ETH price could rally as a result of the ENS integration, driving it toward $2,500.

The ease of crypto transfers enabled by ENS, combined with PayPal’s user base, may increase transaction volume on the Ethereum network, positively impacting ETH’s value.

Moreover, this partnership emphasizes PayPal’s ongoing commitment to blockchain technology. As more users become comfortable with transacting in crypto via PayPal and Venmo, Ethereum’s liquidity and demand could see a significant uptick, providing further upward pressure on the coin’s price.

Ethereum Name Service Expands Amid Patent Dispute

ENS, an open-source protocol designed to simplify the Ethereum user experience, has been making strides beyond just crypto payments.

In May 2024, ENS Labs announced a migration to a layer-2 network, a move aimed at lowering gas fees and improving transaction speeds on the Ethereum network. This was seen as a critical update to further boost ENS adoption, particularly in high-transaction environments.

However, ENS Labs is currently engaged in a legal battle with Unstoppable Domains, contesting a patent that was awarded to Unstoppable.

ENS argues that the patent infringes upon its open-source technology. According to ENS, the patent lacks “novel contributions” and poses a threat to the collaborative nature of Web3. ENS filed a petition with the U.S. Patent and Trademark Office in an effort to preserve open standards within the blockchain space.

Despite these challenges, ENS has continued to build momentum, with more platforms integrating its services. Its partnership with PayPal and Venmo is the latest in a series of moves aimed at making decentralized technology more user-friendly and accessible to everyday users.

With this integration, Ethereum may be poised for its next price breakout, especially if the adoption of ENS services leads to increased transactional activity on the network.

As PayPal and Venmo extend their crypto services to more users, Ethereum’s value proposition continues to strengthen, making the $2,500 price target for ETH increasingly plausible.

ETH Price Forecast: $2,500 Resistance Remains Daunting

Ethereum’s price momentum appears fragile after a recent 3% drop, hovering at $2,349.99. The Bollinger Bands (BB) indicate a bearish trend as ETH trades below the middle band at $2,459.60.

This suggests selling pressure could intensify, particularly if Ethereum fails to break above this level soon. The upper band at $2,749.45 remains a distant target for bulls, making the $2,500 resistance level daunting in the near term.

The BBP (Bollinger Band Percentile) at -50.93 signals that Ethereum is still undervalued, but this indicator also reflects weak buying pressure, with the coin struggling to maintain any significant upward momentum. Should ETH break below the support at $2,169.76, it could trigger a deeper sell-off, likely testing even lower levels as market sentiment leans bearish.

In the short term, if ETH price cannot reclaim the $2,460 level, it risks further declines toward the nearest support at $2,170. A failure to hold this support zone could open the doors to a potential breakdown below the critical $2,000 psychological support.