As the price of Ethereum surged to its all-time high, there are expectations that a reversal may occur.
By Godfrey Benjamin
Updated
2 mins read
Ethereum (ETH), the second-largest cryptocurrency by market capitalization has jumped to a new all-time high (ATH) in price. According to data from CoinMarketCap, the coin soared to $1,950 in a never-before-seen move. Per the attained milestone, the digital asset’s appeal in relation to Bitcoin (BTC) is more improved.
The rally in the global cryptocurrency ecosystem has steered different altcoins to new price highs, and while others may have a more pervasive rate of growth, Ethereum has unlocked fundamentals to drive more sustainable growth. One of these is the proposed migration to the Proof-of-Stake (PoS) network. This journey has been marked with the launch of the Beacon Chain per earlier Coinspeaker reports.
Ethereum is ambitious to surge past the resistance level at $2,000 which will form a new ATH. Data from TradingView shows the cryptocurrency is about 4% away from this point. With potential sell-offs imminent, surging to and beyond this level may, however, prove more challenging than it appears.
The value attached to the Ethereum network, despite the escalating case of increased gas fees is not deterring its growth. Although the effects of the gas fees are obvious, other fundamentals are helping to sustain the appeal of the network. Decentralized Finance (DeFi) protocols continue to embrace Ethereum as the backbone infrastructure while anticipating the more scalable Ethereum 2.0.
As the price of Ethereum surged to its all-time high, there are expectations that a reversal may occur. This position is backed by the reversal that happened in the 2018 bull run cycle when the coin dropped most of its gains.
Crypto analyst and the Chief Executive Officer of CryptoQuant, Ki Young Ju believes this ongoing rally has a different twist compared to previous ones.
$ETH all-time high in 2021 is different from 2018.
Fewer deposits, more withdrawals across all exchanges.
Selling pressure significantly weaker than in 2018.Save Chart 👉 https://t.co/CKsNQVp89j pic.twitter.com/S7Gyd6WfIY
— Ki Young Ju (@ki_young_ju) February 18, 2021
Besides the on-chain backing to Ki’s position, Ethereum is also seeing increased embrace from institutional investors. The massive stack-up of the asset is now being considered as an alternative to Bitcoin whose price is also ballooning.
The smart contract of Eth 2.0 is also recording a massive surge as revealed by the on-chain data service platform, Glassnode. The analytics firm revealed via Twitter on Thursday, February 18.
📈 #Ethereum $ETH Total Value in the ETH 2.0 Deposit Contract just reached an ATH of $5,779,712,053.64
View metric:https://t.co/1ezmu1GKcj pic.twitter.com/LBx7yToUtM
— glassnode alerts (@glassnodealerts) February 18, 2021
This is also an indication of the health of the network, and one of the factors that is making it more appealing to both retail and corporate investors.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
