HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Ethereum Just Surpassed $500 For First Time Since 2018—Key Reasons Why

Altcoins 2020/11/20 10:53 by Joseph Young

The price of Ethereum (ETH) hit $500 on Binance for the first time since July 2018. The timing of the ETH rally is noteworthy because it comes merely two days after it dropped to $456.

Within two days, from its lowest point on November 18, ETH has rallied by nearly 10%.

Several key reasons appear to be buying the sentiment around Ethereum. The main two reasons are likely the resurgence of decentralized finance (DeFi) and the imminence of ETH 2.0.

ethereumThe 4-hour price chart of Ethereum. Source: ETHUSD on TradingView.com

DeFi Recovery and ETH 2.0 Fuel Ethereum Rally

In the past week, major DeFi tokens in the likes of Yearn.finance (YFI) and Aave posted large gains against both ETH and the U.S. dollar.

Following a capitulation-esqe drop, the recovery of DeFi tokens likely boosted the market sentiment around Ethereum and the altcoin market, in general.

Atop the rebound of DeFi tokens, the impending ETH 2.0 mainnet release has investors optimistic around Ethereum.

Especially as Ethereum heads towards the deadline of the eth2 deposit contract by the month’s end, the supply of ETH on exchanges would likely drop.

When the circulating supply of ETH on exchanges continuously declines, the sell-side pressure on the cryptocurrency could also drop in tandem.

Investors are Uncertain Whether to Choose Bitcoin, Ethereum, or DeFi

Based on the recent trend of the market, investors are seemingly bracing for a prolonged bull market heading into the year’s end.

According to Spencer Noon, the head of DTCCapital, investors are uncertain whether to choose between Bitcoin, Ethereum, or DeFi. He wrote:

“Behind the scenes, very few investors I’ve talked to have conviction about whether $BTC, $ETH, or #DeFi tokens outperform this bull market. I don’t blame them for having 1/3 exposure to each, which seems reasonable given the uncertainty.”

This uncertainty could benefit Ethereum as Bitcoin has rallied significantly in recent months. It is already nearing $20,000, and some may think that its upside potential is limited until it passes $20,000.

If Bitcoin achieves a new all-time high, it would enter price discovery, which would lead to a new peak for the dominant cryptocurrency.

Until BTC reaches a new record high, the probability that the appetite for DeFi and ETH would strengthen remains high.

0 Like(s)



You should also read...

Bitcoin 29/07/20 03:00 by Tony Spilotro
Analyst: Bitcoin’s 20% Surge Ruptured DeFi Boom, Projects Dive 20% or More
While Bitcoin was trading sideways, small-cap altcoins, decentralized oracles, and DeFi tokens were the stand out crypto market performers for several months. However, as the first-ever cryptocurrency...
Read More
Altcoins 14/08/20 04:00 by Cole Petersen
$6.8 Million is Being Spent on Ethereum Fees Each Day as DeFi Craze Continues
The DeFi craze is reaching new peaks, with investors now throwing money into just about every Ethereum-based token with unique properties and strong “meme potential.” One such example of this is Y...
Read More
Altcoins 17/09/20 17:05 by Joseph Young
Ethereum Price Drop Below This Level Could Mean Bigger DeFi Carnage
The price of Ethereum (ETH) has dropped from $488 on September 2 to below $380, falling by over 22%. If the correction of ETH continues, traders say decentralized finance (DeFi) tokens could further s...
Read More
Bitcoin 29/09/20 19:00 by Tony Spilotro
Yearn.Finance (YFI) Could Fall To $15K “If” Bitcoin Brings Down Crypto
Yearn.Finance (YFI) is one of the most talked-about cryptocurrencies of 2020, both due to its scarce 30,000 token supply and its miraculous price increase to more than 1 BTC in value. However, the DeF...
Read More
Altcoins 06/10/20 03:00 by Tony Spilotro
Ethereum Leads DeFi Tokens On A 60% Average Fall From Summer Highs
Ethereum is the top dog when it comes to DeFi. Other decentralized finance tokens are built on its blockchain and require ETH gas fees to transact. This also could be why the top-ranked altcoin is hel...
Read More