Price of Ethereum reaches a new all-time high, in a surge of cryptocurrencies. Ethereum prices rose to fresh highs ahead of the Altair Beacon Chain upgrade next week, but then fell again. How do crypto specialists interpret it?
According to CoinGecko data, the price of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has dropped. Reached a new all-time high (ATH) of US $4,361.18 on Oct. 21. A tiny increase from its previous ATH of $4,356.99 on May 12.
However, Ethereum’s record price high was quickly followed by a 3.7 percent loss in less than an hour. According to CoinGecko data, Ethereum is now trading at $4,140 at the time of writing.
Ethereum is Catching Up and Outperforming Other Altcoins
Following the launch of a Bitcoin futures ETF in the United States, crypto market observers told Forkast. News that they were not shocked by Ethereum’s price swings. And that investor attention has shifted from Bitcoin (BTC) to Ethereum.
“With rumors of Ethereum ETFs on the way. Many investors are gaining exposure to ETH ahead of any announcement, “Justin d’Anethan said. He is also the head of exchange sales at EQONEX, a Nasdaq-listed crypto business, he told Forkast.News. “From a cyclical standpoint, it also stands to reason that if BTC reaches a new high. ETH will rise as well—and possibly outperform at some time.”
“The balance of Ethereum on exchanges is at a two-year low. And Friday’s US$435 million options expiry favors calls massively. These two causes have been fueling ETH’s recent spike, “Igneus Terrenus, the head of communications at crypto exchange Bybit, told Forkast.News. “On October 27, the Altair Beacon Chain update, the first step in Ethereum’s move to proof-of-stake (PoS). And is also expected, giving ETH even more momentum on its upward trend.”
Ethereum’s ascent was followed by a pullback, according to EQONEX’s d’Anethan. It was similar to Bitcoin’s trading behavior earlier this week, with buyers clearing some of the selling overhang before pushing higher. “We frequently see BTC leading, followed by ETH, and then more exotic or speculative coins.”
ETH is the Leader of Alts
“ETH is the market leader among alts, and if the trend continues. Expect a wave of lesser market size coins to rally.” If you look at Solana (SOL), VeChain (VET), Chainlink (LINK. And others, many of them have,” d’Anethan remarked. “Everyone is looking for the next thing to move and bring in a profit.”
Most of the time, according to Joah Santos, CMO of cryptocurrency exchange Aldrin, there was order to the money movement. In an email to Forkast.News, Santos said, “BTC pumps, ETH follows, BTC retraces. Other Layer 1 pumps, and so on. ” “This narrative has been told so many times that the only change today is the length of each cycle. I’m expecting a major run on the little caps in those ecosystems, given how things are going on the Layer 1s.”
Ethereum’s popularity is further aided by the emergence of decentralized finance (DeFi). And also the current non-fungible token (NFT) craze.
“As the dominant smart contract platform. The price of Ethereum is directly influenced by the rapid adoption of [decentralized applications (dApps)]. Across the most active categories of DeFi, NFTs, and gaming, “said Dragos Dunica. He is also the co-founder of DappRadar, in an email.
“As dApp adoption increases, alt price cycles shorten. And the correlation between dApp activity and token price is tightening, “said Dunica. Usage is at an all-time high, which is great news for Ethereum. I wouldn’t be surprised if it reached $10,000 before the holidays. “
The Ethereum Trend Will Continue
According to Danny Chong, co-founder of Tranchess, a yield-enhancing digital asset tracker. Ethereum will continue to hit new highs for the foreseeable future.
“Both from a market capitalization and future upgrading viewpoint. “Ethereum will continue to gain in long-term value,” Chong continued. With increased institutional acceptance, and us. It will also continue to be the largest programmable blockchain sector.
Transition to Eth2
Even if “competitor” blockchains like Binance Smart Chain, Cardano, Polkadot, and Solana. It has arisen to challenge Ethereum’s dominance. The great majority of DeFi protocols and stablecoins still run on Ethereum.
With each Eth2 upgrade, Ethereum becomes more scalable, secure, and long-lasting.