Ethereum Price Up 5.50% – Time To Buy ETH Coin?
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The Ethereum network has witnessed a bullish run in the past four weeks. Ether has rallied more than 30% from its May low of $1,800, touching the $3,500 a few days earlier. Coupled with its recent London hard fork, which has made its utility token deflationary, several investors are out to buy ETH. This article tracks Ethereum’s price performance in the last 24 hours and if this could be a good time to buy ETH.
Ethereum: Changing the Face Of Finance
A group of eight developers launched Ethereum in July 2015. Leveraging blockchain technology and Bitcoin’s core consensus algorithm, Ethereum enabled the trustless transfer of any asset in seconds.
However, a few things differentiated Ethereum from the more ancient decentralized network. At its core, Ethereum was built to enable the development of smart contracts, which are crucial to the building of blockchain-based applications aptly named decentralized apps or dapps.
These trustless financial tools birthed decentralized finance (DeFi), which has since revolutionized financial services as we know it. However, the Ethereum network has been plagued by one particular issue; choice of mining protocol.
Using proof-of-work (PoW) mining protocols like Bitcoin has impacted its performance and further affected its gas fees (network fees paid for using the Ethereum network). PoWs are slow in block finality, consume much energy in validating transactions, and lead to high network fees.
Ethereum’s success in bringing DeFi and non-fungible tokens (NFTs) to the fore created problems for the network, as its performance lagged behind its success. Hence, the network is on a quest to transition to a newer consensus algorithm with less energy demand and faster validation output.
Its journey to a proof-of-stake (PoS) protocol recently saw it launch the London hardfork, including the famous EIP-1559, which enables burning a certain amount of mining fees. This has seen ETH become a deflationary token much like BTC and several investors are on the lookout to buy ETH.
ETH Riding The Crypto Waves
The crypto market hit a serious snag in May following regulatory action by China and open criticism and subsequent ban of Bitcoin payments by Tesla. This saw the nascent industry spiral out of control, with over $1 trillion shaved off the market in a matter of days.
Crypto activities hit an all-time low, with the wider market’s value dipping by 50%. The three-month hiatus has served the emerging industry well, and August has served as a major boost.
The bulls have returned, and ETH has also seen its value spike. Trading at $1,800 during the bearish lull, the digital asset jumped more than 30%, hitting $2,800 in a matter of days. ETH has continued its remarkable recovery and has posted more massive returns in the past 48 hours.
With NFT and DeFi activities surging in August, ETH surged to a record value of $3,834.83 on Sept. 1 since its May high of $4,350. The digital asset shows the intent of surpassing this value and currently trades at $3,957.95, rising 5.50% in the last 24 hours. A bullish potential like this is a signal to buy ETH as it may hit the $5000 mark before the year ends.
ETH Technical and Fundamental Analysis
On the trading chart, ETH is on strong bullish momentum. The second most valuable cryptocurrency is trading above the 20-day moving average (MA) support price of $3,321.64. The relative strength index (RSI) is also bullish as it currently indicates that ETH is overbought at 73.98. If a high RSI does not perturb you, this may be a great time to buy ETH.
Ethereum is also showing major fundamental growth. On Aug. 31, Off-chain Labs launched the much anticipated Arbitrum One on the Ethereum mainnet.
This is meant to help the blockchain platform to scale and process transactions faster. It will also address the long criticized Ethereum gas fees, which have been rising following high network traffic. So far, over 400 teams are currently working on building on the multi-scaling solution. Given its unique role as the digital currency for the rapidly growing DeFi sub-sector, more institutional adoption of ETH is on the rise.
According to a digital asset management firm CoinShares, ETH-based products were the most traded asset with weekly inflows exceeding $17 million. It also said that ETH investments from institutions represented 32% of the sector’s total assets under management (AUM).
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