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When the year started, Ethereum, the world’s biggest altcoin, was worth just under $750. With Bitcoin breaking through its 2017 peak in December, many in the Ethereum world predicted ETH to follow suit in due course. And so it was that the alt surpassed its previous ATH on the charts a few weeks back. However, contrary to popular belief, the crypto-market did not exhaust its bullish momentum, with both BTC and ETH soaring to new highs.
At the time of publishing, Ethereum has for the first time ever broken through another crucial price barrier, the $3,000 mark. Following a 2.56 percent increase in the previous 24 hours.
A number of reasons have contributed to the Ethereum market’s bullishness and price revival. As normal, Bitcoin’s rebound to over $58,000 has been a strong catalyst, particularly given the strong link between the two crypto-assets. It’s worth remembering here that ETH’s new round of price growth started just before BTC’s turnaround streak began.
There have also been some positive developments. The news that the European Investment Bank launched its first-ever decentralised bond on the Ethereum blockchain has been the most significant of these updates. The EIB’s support of Ethereum is yet another move forwards in the widespread acceptance and implementation of blockchain and cryptos.
Apart from that, as has been the case for the past few months, DeFi’s valuation and user base continue to rise steadily, with the same impact being felt by Ethereum, considering its transaction costs.
Because of the above reasons, ETH was able to eventually break through the $3,000 barrier, and the crypto seems unlikely to correct by a large margin anytime soon. However, other indicators other than price may illustrate the bullishness in the ETH industry.
Ethereum address activity, for example, has continued to reach new highs, with small price chart corrections doing nothing to slow the trend.
The same was true when whale addresses were considered. In reality, counter to what can be predicted as Bitcoin-led corrections grip the economy, whale addresses in the Ethereum market have continued to grow amid price hiccups. This finding demonstrates investors’ trust in the long-term price potential of ETH, particularly because there were very few instances of holders cashing in their profits as well.
Finally, as was pointed out by Santiment recently,
“#Ethereum’s dormant tokens are moving rapidly to justify yet another #AllTimeHigh above $2,740 today. With many new $ETH addresses being made and dormant tokens cycling rapidly, this is the youngest average investment we’ve seen since July 2018.”