Ethereum’s rise exceeds bitcoin, will it continue to be bullish in the future?

Ethereum, the second largest cryptocurrency by market value, has soared. Since January 1, it has outperformed bitcoin, up about 81%. On Sunday, the price of Ethereum soared to $1454.32, a record high again. Despite a temporary correction, it remains one of the top 10 strongest performing assets. Ethereum price analysis Ethereum has climbed to the upper resistance of $1300, bulls are trying to restore the upward trend. The rising moving average and relative strength index above 61 indicate that bulls are under control. Eth / usdt daily chart if the price falls from the upper resistance level, the currency pair may fall to the 20 day average (US $1166). If it rebounds from this support level, it will increase the possibility of a return to the upward trend. However, if the next decline falls below the upward trend line, it indicates that the trend is likely to change. The next support level down is the 50 day moving average (US $882). The ETH / usdt bear is currently trying to hold the $1350 overhead resistance level. If the price turns down from the current level, it is possible to find support in the moving average. A rebound from this level would indicate that bulls buy on every small decline, which would increase the likelihood of breaking through $1350. Contrary to this assumption, if short positions push prices below the moving average, the currency pair may fall to the upward trend line. Falling below this level will indicate a change in market sentiment and may lead to a deeper correction. Ethereum has outperformed bitcoin, which has increased by more than 15% in 2021 so far, but Ethereum has performed much better, with an increase of more than 70% over the same period. The fast-growing total lock in value (TVL) of the defi market has driven the growth of the defi token, which is the most popular indicator to track the growth of defi and its corresponding growth. According to oklink data, the total lock up volume (TVL) of Ethereum’s defi protocol has exceeded US $36 billion, indicating a large demand. This is critical to the momentum of Ethereum as more and more applications and tokens rely on its network. In August 2020, arcax and algorand announced plans to develop a tool for introducing defi into institutions. In the fall of 2020, xsigma, a subsidiary of ZK international, which is trading on Nasdaq, is committed to developing the DFI service and is ready to launch a decentralized exchange to trade stable currencies. Other layer 1 blockchain protocols are also growing and are expected to compete with Ethereum, such as Polkadot and cosmos. However, in the foreseeable future, due to the network effect of Ethereum and the comprehensive value of the defi protocol on Ethereum, the dominant position of Ethereum in the field of profi is unlikely to be challenged in the short term. There is a strong bullish atmosphere in the Ethereum community. Since Ethereum broke the record price set in January 2018, the mood surrounding the Ethereum community has become very positive. Anthony sassano, marketing director of set protocol, a longtime investor in Ethereum, said the rise represented the fundamental work done by developers in the Ethereum ecosystem over the past three years. Ethereum has outperformed bitcoin in the recent bull market cycle due to the new momentum generated by the increasing demand for decentralized finance. “Many dedicated Ethereum community members spent three years building the Ethereum ecosystem during the bear market,” sassano said. Now, their efforts have paid off. ” The data on the chain also shows an upward trend, while there are many other indicators indicating that the price rise of eth may have just begun. The weekly price trend of Ethereum, the transaction volume of Ethereum will increase, and the transaction value recorded on Ethereum blockchain will exceed $1 trillion in 2020. These figures exceed the transaction volume of payment giants such as PayPal, which has more than 350 million users and an average transaction volume of less than 200 billion US dollars per quarter. Each transaction generates a network fee paid in eth. And since the growth rate of the network is still very high, we can confidently expect that the “bullish” trend of Ethereum will continue. Interest in cryptocurrencies is growing, as are the number of active wallets, the number of transactions online, and the average transaction size. On Saturday, the number of whale addresses (with at least 10000 ETH) jumped to 1103, a 13 month high, according to online data from blockchain analyst glassnode. This month alone, it added 35, and 75 since mid November. The increasing funds accumulated by investors may push the price of Ethereum to rise further. Number of addresses with more than 10000 eth, Spencer noon of variant, a cryptocurrency venture capital fund, said on January 19 that in the past eight months, more than one million unique addresses have interacted with DFI. Noon added that DEX’s monthly trading volume is currently at an all-time high of more than $30 billion, while more than $20 billion has been deposited in the defi loan agreement. In addition to defi, noon also stressed that Ethereum is the largest blockchain network on a daily basis – more than 50% higher than bitcoin; in the past 12 months, the number of active Ethernet addresses per day has doubled to 550000, a record high; in the past year, Ethereum has forged nearly $20 billion worth of stable currency. While Ethereum fundamentals are soaring, noon points out that the number of eth transactions worth more than $100000 is seven times less than the high in January 2018, indicating that “institutions are not in the game yet.”. The daily trading volume of Ethereum will achieve a “good start” in 2021. What factors will drive its price to rise further in the future? Ethereum futures will soon launch the world’s largest derivatives platform, the Chicago Mercantile Exchange (CME) announced on December 16 that it plans to launch Ethereum futures before February 8. The arrival of Ethereum futures will eventually bring more maturity to the encryption market. Although there is no actual delivery of futures, it has greater liquidity. This is beneficial because it will give institutional investors the opportunity to hedge their spot positions, thereby reducing the overall risk and making Ethereum a more attractive investment. The first phase of Ethereum 2.0 is expected to be launched this year. Ethereum is transitioning from the proof of workload blockchain to the blockchain operated by the proof of interest consensus mechanism. The goal is to become a faster, more efficient and more scalable platform. Ethereum 2.0 upgrade is divided into four different phases: phase 0, phase 1, phase 1.5 and phase 2. Each stage lays the technical foundation for the next stage until the completion of the final stage. Phase 0 was launched on December 1, 2020, and the beacon chain (a new blockchain layer that will coordinate activities between individual Ethereum fragment chains) was implemented. The first phase is the next stage of Ethereum development, and 64 fragment chains will be launched. All transactions across the network will eventually be allocated and processed between these individual blockchains. The advantage of this new system is that the transaction does not need to be verified by the whole network, but only needs a sub chain. This will greatly reduce the time required to confirm the transaction, and the whole network will be able to handle more transactions without suffering from the current network congestion. Although there is no exact date for the launch of the first phase, it is expected to be launched this year. Conclusion in 2021, Ethereum achieved a “good start” and its increase exceeded that of bitcoin. During the consolidation period of bitcoin with low volatility, Ethereum did not “sink”, but realized “counter attack” and the trading volume increased significantly. In the future, how its trend will develop, let’s wait and see! If you want to learn blockchain systematically, it is recommended to start with some good introductory books, and learn to improve what you can’t save [many friends are anxious every day, asking questions and jumping randomly, that is, they don’t read, they don’t study – they suffer from not reading, they suffer from not learning! It’s not expensive to buy a book! 】Photo source: tradingview, pixabay, glassnode, Etherscan, IO Author: Amy Liu

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