Business, Ethereum, Market Analysis

Ethereum Analysis – Price Can Explode Anytime.

On strong optimism surrounding the most widely used blockchain network, Ethereum, the second-largest cryptocurrency, rocketed to a new high above $4,400 on Friday.

The digital asset rose 4.8 percent to $4,459.20, breaking the previous high of $4,379.62 established in May. As of 2:41 p.m. in New York, the token was trading at $4323.93. Other tokens, such as Binance Coin and Solana, have risen in value. Ether is now valued at almost $520 billion.

Ether’s recent achievement comes as the digital currency has outpaced Bitcoin by a factor of six this year, owing to a surge in retail and institutional investor interest.

Ether is the foundation of the Ethereum Network, which is the most widely used blockchain for hundreds of decentralized apps. This week, the system received a boost thanks to a successful upgrade that made it speedier and more energy-efficient.

ETH

ETH/USD 1 Day Price Chart: Source- Coinmarketcap.com

According to Bybt statistics, outstanding Ether futures increased to $12.5 billion, surpassing the May high and setting a new record high. On online exchanges, funding rates — or the cost of keeping a bullish bet open — have risen this month, similar to Bitcoin. The futures curve on CME has also steepened, indicating that traders are optimistic about the price outlook.

In a study released Thursday, digital asset strategists Sean Farrell and Will McEvoy wrote, “On-chain activity measures for Ethereum appear to have found support and are nearing multi-month highs.” The strategists noted that metrics such as transaction rate, new addresses, and active addresses have all exhibited a robust increase this month after seeing dips in May.

Meanwhile, some observers believe there is a link between the popularity of the Shiba Inu coin and Ether’s performance.

According to Sam Doctor, Ethereum’s EIP 1559 upgrade was introduced in August, and it burns a percentage of the fees paid to miners, lowering net issuance as a function of network utilization.

“If Shiba Inu generates a lot of traffic, it causes network congestion and contributes to the burning of more ETH,” he explained. “As a result, the net growth in ETH in circulation is slowed. The price of Ether was likely driven up by a lack of ETH supply paired with increased network activity.”

Following the launch of the first Bitcoin-linked exchange-traded fund in the United States, Bitcoin surged 40% to a new high of about $67,000 this month. In New York trade, the world’s largest digital currency was 1.6 percent higher at $62,405.

Leave a Comment

Your email address will not be published. Required fields are marked *