It seems that there are a few bulls favoring factors that suggest ETH price will see further upwards momentum
Earlier this week, the ETH price encountered some significant fluctuations, causing it to plummet to $ 230 before recovering strongly to the current price. At present, there are still a few factors that support ETH and suggest that the bullish momentum will begin in the coming days.
At press time, the price of ETH is hovering around $ 242, turning a bit green compared to the ten cryptocurrencies that are all displayed in red. From a technical perspective, it can be seen that ETH is well-positioned to raise prices shortly.
It seems that the ETH price still has enough opportunity to increase in price in the coming days and weeks
ETH price is marking an extension of the consolidation phase that it has been capturing for the past few days because it has remained technically strong despite the recent denial that it faces in the mid $ 250 region.
ETH is closely monitoring Bitcoin price action at the moment, as BTC is currently trading slightly up at the current price in the region between $ 9,600 – $ 9,700. However, analysts still believe that ETH is technically strong in its own right.
According to Byzantine General analyst, ETH seems to be fundamentally strong because recent increases in liquidity scans have not caused any downward trend.
He noted that this was a sign of the hidden strength among its bulls.
$ETH took liquidity to the upside twice and bears still aren’t able to drag this down.
This gives me the impression that ETH remains bullish. pic.twitter.com/MmNLQj46lj
— Byzantine General (@ByzGeneral) June 6, 2020
Glassnode: Ethereum usage has rocketed
Still, we can’t deny that Ethereum’s price is still down more than 80% from its all-time high. The good news is that it does not prevent cryptocurrency users from increasingly accepting Ethereum.
According to Rafael Schultze-Kraft, the chief technical officer of blockchain analytics firm Glassnode, the number of new daily Ethereum addresses with more than one transaction has increased significantly since the beginning of the year, reaching an unprecedented level since 2018.
#Ethereum has seen a surge in usage in 2020.
The number of new addresses involved in more than one $ETH transfer has grown significantly this year.
New daily addresses with:
3+ txs: 32k (+ 159%)
5+ txs: 19k (+ 137%)
10+ txs: 9k (+ 114%)
25+ txs: 4k (+ 104%)
50+ txs: 2k (+ 98%) pic.twitter.com/FwA8qdwHZP— Rafael Schultze-Kraft (@n3ocortex) June 6, 2020
Analysts say the increasing use of the Ethereum network is a factor that will help push ETH prices even higher. Mythos Capital founder Ryan Sean Adams also support this view.
Adams explained that, over the past four years, ETH prices had been closely correlated with the transaction fees that Ethereum users have to pay. Due to increased blockchain activity, fees have skyrocketed in recent weeks. If the historical relationship is maintained, ETH is willing to increase by tens of percent.
ETH price vs Ethereum blockspace fees
The increase in the use of Ethereum is far different from the only positive catalyst currently affecting the underlying market for ETH. Specifically, the value of ETH locked in decentralized finance has recently reached the $ 1 billion regions a second time. Analysts believe that DeFi’s growth will serve as one of Ethereum’s most significant growth drivers over the next few years.
The founder of MakerDAO Rune Christensen, for instance, said that Ethereum through DeFi would attract “all value” in the cryptocurrency space:
4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.
— Rune Christensen (@RuneKek) May 20, 2020
Besides, the first phase of the Ethereum 2.0 upgrade will go live. The upgrade will introduce Proof of Stake into the ETH market, spurring lower altcoin inflation over time. The introduction of staking is expected to result in an influx in demand from long-term holders who want to stake their Ether in exchange for interest.
Read more:
- ETH Demand Saw Booming, Also Coincided With A Massive Rise In The Ethereum Hash Rate
- 7 Things You Didn’t Know About Ethereum 2.0