The price of Ethereum (ETH) rose from $ 83 to $ 150, which is about 80% compared to last month's dollar, in a significant corrective recovery.
On Wednesday 2 January 2019, after a 7% increase in its price, ETH exceeded Ripple (XRP) to re-enter its second position
precious digital currency on the world market.
What led ETH to rise by 80%
There are two main factors that have led to the short-term increase in the price of ETH over the last 30 days: oversold conditions and the imminent fork of Constantinople.
From the beginning of November to the middle of December, ETH experienced a profound decline in value as its price fell from $ 220 to $ 83. Despising its previous increase of 80%, the Crypto has yet to reach Nov levels and it should still go up by a further 46% to return to $ 220.
The cryptography market has shown a state of oversold after the precipitous fall in the price of ETH from November to December 2018, palling the sales pressure on the cryptocurrency and allowing the asset to meet.
An economist and a crypto dealer, Alex Kruger, said that the next ETH fork known as Constantinople is increasing the demand for ETH, as the fork would have greatly reduced Ethereum's three-to-two blocking premiums.
"Notable outperformance of Ethereum compared to Bitcoin in recent weeks.There is a reason for this: the next fork / bid reduction.Another BAKKT delay is added to it," the trader
The reduction in the Eth Blocking premiums reduces the amount of Ethereum miners that can produce, which will lead to a gradual long-term decline in the major supply of Ethereum. As the supply of Ethereum decreases and the demand increases or remains constant, the price of Ethereum is expected to increase.
On Christmas Eve 2018, Kruger added that:
"The ETH fork in Constantinople is arriving on the 7080000 block,
around January 16, 2019. Constantinople will lower the block premiums from 3 to 2, thereby reducing the new offer of Ethereum. In the long run, this is definitely bullish. "
ETH Best Performing Crypto in December
Ethereum was one of the best performing criptoassets in December of last year, surpassing Bitcoin (BTC), XRP and Bitcoin Cash (BCH).
However, the market valuation of Cryptoasset is still $ 130 billion and is still a long way from the rally to the previous highs, which makes it difficult to say that Ethereum has started to approach a gigantic medium-term drum.