The cryptocurrency market has been on a bullish run since October as bitcoin, Ethereum and other altcoins hit new all-time highs, and some are even using their old all-time highs as new support prices. The journey to the moon is on, and the market is very supportive of the trend. Ethereum, the number one altcoin, based on price and acceptance, hit an all-time high in the same week that bitcoin rose as high as $64,000 on redot, a cryptocurrency exchange platform. And the stats show that this movement will continue.
There are a plethora of reasons why the price of Ethereum rose to an all-time high, and the predominant reason for the rise is the successful altair upgrade of the Ethereum system.
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Ethereum blockchain and its main nets have come under serious criticisms for the high cost of gas fees they incur. Due to these complaints, Vitalik Buterin, co-founder of Ethereum has been dedicated to moving Ethereum to a new main net.
First, if you don’t know what a mainnet is, here is a quick definition:
A mainnet deals with the transfer of digital currencies, Ethereum in this case, from one person to the other – from the sender to the recipient. A mainnet is like a dispatch rider that ensures that whatever is sent from one person is received by the other person.
So, with Ethereum moving to a new mainnet, the transaction fees will be reduced. The altair upgrade is in line with Ethereum’s plan, as announced in the Ethereum Foundation blog, to move completely from proof-of-work to proof-of-stake. The altair upgrade was well received by a market that is desperately in search of good news to switch market sentiment.
The statistics from credible trading platforms trading viewed reveal that the price of Ethereum suffered some price slump in the early hours of November, this is after Ethereum had been on a constant strong positive run since October. Ethereum’s price fell to about $4,200, but when the whales entered the market, they raised the price to about $4,500 in less than 24 hours.
As mentioned earlier, the upgrade was a major factor for the price surge in Ethereum, but most importantly, several news and activities on the Ethereum blockchain has been motivating whales and institutions to buy Ethereum.
From the growth of NFTs to the shrinking space on the Ethereum blockchain, Ethereum’s usefulness is growing by the day, and the whales and institutions are aware of it. While many people still believe that Ethereum is a great store of value, the potential of it becoming a currency is high. NFTs are becoming the taste of the elite class, therefore, if people want to purchase NFTs, they need Ethereum to buy them. In the long-term, Ethereum will be more than just a store of value to an integral digital currency that countries and organizations will adopt.
The predictions from cryptocurrency analysts and traders are that if the price of Ethereum continues on its price surge till the end of November, it’ll be eight consecutive quarters where the number of r altcoin has amplified in price.
When it comes to cryptocurrency, history plays an important factor in shaping how the market moves, and the sentiments that drive traders and investors’ decisions.
While we can’t rely solely on history – and in this case can’t be relied on – there are lessons we can learn from the past. In 2017, before the cryptocurrency bullrun, the price of Ethereum had broken it’s all-time high at the time, and the same conditions are what we are experiencing now.
The 2017 trend, although isn’t the same as what we have now in 2021t the correlations can’t be denied. Therefore, drawing lessons from 2017’s bull run, then the price of Ethereum will rise in the coming months.
In 2017, there were not as many whales and institutions buying Ethereum, but that has changed drastically. Now, the Ethereum blockchain is powering massive projects, and as a ripple effect the big money players are buying Ethereum’s native currency, ether.
Ethereum planned to transition fully to the new mainnet, one that works with proof-of-stake, and the transition has been the motivation for Ethereum holders to stake their Ethereum. More than 8 million Ethereum has been staked, and this has caused the number of Ethereum in circulation to reduce drastically, and in tu,rn caused a price spike. the simple laws of demand and supply coming to play: less supply, more demand, the price surges.
The series of projects on the Ethereum blockchain, and the growing request for NFTs, coupled with the influx of whales and institutions has caused cryptocurrency analysts and traders to predict that the price of Ethereum will rise to as high as $10,000 before the end of the year. The predictions are in line with the rise in bitcoin price.
Now, while bitcoin’s price doesn’t always mirror Ethereum’s, there is a strong correlation between how well bitcoin is doing in the market and how well Ethereum is doing as well.
Some traders, in carrying out technical analysis, often pit bitcoin’s price against Ethereum to predict where the price will swing towards. The trend informs their decision on the direction the price of Ethereum will head towards.
Historically, the cryptocurrency market is bullish in November and December, and the recent market trends show how it might continue this year. However, as at the time of this article, the prices of bitcoin and Ethereum, and other altcoins such as Solana and Cardano are suffering the dip.
A plethora of reasons exist for the recent dip in the market, one where Ethereum is selling for $4,300, falling from the all-time it reached barely fourteen days ago, and bitcoin selling for $60,000 on redot.com.
The market’s dip also affected altcoins such as Solana, BNB and Cardano.
While the market drips with red at the moment, no thanks to the series of news and activities in the market, ranging from President Joe Biden, the president of the United States, signing the infrastructure Bill into law to the massiprofit-takinging based on the taproot news to the news that Twitter won’t be adding bitcoin to their balance sheet, the future still looks bright. The dip, analysts say, won’t last for long. So, in the imminent weeks, we expect the price surge to continue and new all-time highs reached.
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