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Ethereum has skyrocketed in the past few weeks, adding 40% to its price over the past month.
Ethereum’s price topped $ 500 per token ether last week for the first time since June 2018, riding the tails of bitcoin’s coat as the largest cryptocurrency rockets to its all-time highs.
As ethereum developers prepare for the launch of ethereum 2.0, now confirmed for December 1, traders and investors are feeling optimistic ahead of the long-awaited Ethereum update.
Ethereum’s price has skyrocketed in recent weeks, and some think it could go up further.
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“In 2017, there was a monster rally in bitcoin over Thanksgiving – this year the chase will likely be in Ethereum,” William Noble, chief technical analyst at Token Metrics, a cryptocurrency researcher, said in an email. ethereum “has a lot caught up to do” to match bitcoin’s recent performance.
The price of bitcoin rose a short distance from its all-time high of 2017 this week, approaching $ 20,000 per bitcoin as Wall Street banks and high-profile investors define bitcoin as a potential hedge against inflation.
Meanwhile, the price of Ethereum is still far from its 2017 high of nearly $ 1,500, but it has undergone a strong rally as the first phase of Ethereum’s multi-year upgrade looms.
Ethereum 2.0, designed to improve scalability and security, will see the ethereum network move from proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS) algorithm. This essentially means that those who receive Ethereum tokens as a reward for maintaining the network will be removed from the process in order to optimize the settlement of transactions.
The price of Ethereum has risen nearly 40% in the past month, climbing over $ 500 for Ethereum.
Coinbase
“We are starting to witness a major rebalancing in Ethereum and the broader alternative currency market as assets traditionally traded in bitcoin, not US dollars, revert to their relative value in bitcoin,” said Nicholas Pelecanos, head of trading at the NEM blockchain development platform via email, adding that it currently has an Ethereum price target of around $ 750 per Ether token.
“During aggressive bitcoin price rallies, market participants sell their bitcoin alts to capture the upside,” Pelecanos added. “Once bitcoin slows down, capital returns to the halts and valuation parity is found. Ethereum, which is fundamentally stronger than ever and in the process of undergoing a full protocol upgrade, is a cryptocurrency that should see its rise in value. valuation compared to bitcoin “.
However, some have warned that a surge in ethereum retail interest could lead to a short-lived boom and subsequent failure, as it did in 2018.
“Retail streams may push Ethereum to test the highs of the 2017-2018 speculative craze, but they could also be a harbinger of a peak of euphoria in the markets and could warn of an impending high in the short term,” Seamus Donoghue , vice president of cryptocurrency custody platform MetaCo, said via email.
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