Ethereum’s fundamentals look strong as it approaches its upgrade
Over the past few days Ethereum has experienced similar price movements to Bitcoin. Given their close relationship, this is to be expected.
A sharp rise above $250 was followed by a tumble back down to $225. All in all, it seems very similar to Bitcoin’s price troubles. However, Ethereum has managed to stay above a key level support at $225.
Because it remains above this support level, as well as the eight-day moving average, some are quietly confident the bulls are still in control.
Promising signs for the future
Bitfinex has seen some incredibly promising signs in regards to Ethereum’s price in the long term. The number of long positions held on the exchange has skyrocketed, as well as their combined value.
The total value of positions now sits above $300 million in value and the number of long positions has increased an eye-watering 580% since the beginning of the year alone.
The promise of Ethereum 2.0 has clearly started to catch investors’ attention. Contrast this to the turbulent Bitcoin market, which is often manipulated, and it makes for a stark comparison.
Beyond purely retail interest in Ethereum, it seems to be catching the attention of corporate eyes as well. Grayscale’s Ethereum Trust, a tracker fund that follows the price of Ethereum, has seen huge increases in over the past two weeks.
The fund has risen from $96 to $217 in this time frame, which is truly impressive and can only reflect how positively large companies are beginning to view the currency; positive news for Ethereum’s long term price.
Ethereum has never had to deal with many of the stigmas that Bitcoin has had to bear, however, it has also never been able to enjoy the high prices that the benchmark cryptocurrency has notched up either.
Forever in Bitcoin’s shadow, one day there will come a time when Ethereum finally manages to fully separate its price from any relation to Bitcoin. Ethereum 2.0 could well be the beginning of this process. Moreover, these positive price signs making themselves apparent today, could be reflecting that retail and institutional investors alike have begun to recognise this.
