[ad_1]
Over the past 30 days, the price of Ethereum has risen from $ 83 to $ 150, of 80% against the US dollar in a strong corrective rally.
On January 2, after a seven percent increase in its price, Ethereum (ETH) outperformed Ripple (XRP) to claim the throne as the second most important cryptocurrency in the global market.
How did Ethereum reach 80% in 30 days?
Two main factors have probably contributed to the short-term surge in the price of Ethereum in the last month: the oversold conditions and the imminent fork of Constantinople.
From the beginning of November to the middle of December, Ethereum experienced a significant decline in value as its price fell from $ 220 to $ 83. Despite the recent rise of 80%, the asset does not it has still reached November levels and should still increase by a further 46% to go back to $ 220.
The market has shown oversold conditions following the sudden decline in the price of Ethereum from November to December, easing the sales pressure on the crypto assets and allowing the asset to recover.
According to Alex Krüger, economist and cryptocurrency trader, the upcoming Ethereum fork called Constantinople is increasing the demand for Ethereum, as the fork would reduce the ETH block premiums from 3 to 2.
"Outstanding outperformance of ETH over BTC in recent weeks.There is a reason for this: the next fork / bid reduction.Another BAKKT delay is added to it," the trader He said.
1 / #EthereumThe Constantinople fork will arrive on the 7080000 block, around January 16, 2019. Constantinople will reduce the block premiums from 3 to 2, decreasing again $ ETH provide accordingly.
In the long run, this is definitely bullish. https://t.co/4bbgAHMz7Z
– Alex Krüger 🇦🇷 (@Crypto_Macro) 24 December 2018
The reduction in ETH blocking premiums limits the amount of ETH miners can generate, which in the long run will lead to a gradual decline in ETH's potential circulating supply. As the supply of ETH decreases and the demand increases or remains unchanged, the ETH price should increase.
On the Christmas Eve of last year, Krüger added:
The Ethereum Constantinople fork will arrive on the 7080000 block, around January 16, 2019. Constantinople will reduce the block premiums from 3 to 2, thereby decreasing the new ETH supply. In the long run, this is definitely bullish.
Krüger also stressed in his analysis that in previous bifurcations, Ethereum has substantially increased its value. While the state of the market is significantly different from the previous ones, in view of the historical performance of the PF, the trader has suggested that the Constantinople fork could contribute to the increase in the price of the asset.
"On the Homestead fork, ETH increased by 1150% in the previous two months (in both USD and BTC terms, since BTC was relatively flat during that time) .The price started a 50% reversal on the day of the not suggesting that one should expect the same – different market, different times, "noted Krüger.
Ethereum (ETH) Best asset in December
ETH remains one of the best performing businesses in December 2018, outperforming Bitcoin, Ripple and Bitcoin Cash.
However, the cryptocurrency market valuation still remains at $ 130 billion and is far from resuming the previous highs and as such, it is still too early to conclude that ETH has begun to enter a medium-term uptrend .
Shutterstock foreground image.
Get an exclusive cryptographic analysis by professional traders and investors on Hacked.com. Register now and receive the first month for free. Click here.
[ad_2]Source link
