Ethereum has more than doubled in price since the beginning of this year, and today it again dominates cryptocurrencies. A new seven-month high was reached when ETH closed at $ 300, but what drives it?
ETHEREUM PRICE DOUBLED IN 2020
In a movement reflecting the rally in May 2019, Ethereum charts again became vertical. According to Tradingview.com, ETH prices hit a new seven-month high of $ 275 during the solid Asian cryptocurrency trading session.
12% increase per day overshadowed all moves Bitcointhat are still slowly growing. Ethereum is now in resistance and a breakout is likely. This will quickly raise prices to $ 300, as there is little resistance on this path.
The last time ETH moved so fast was last May when prices rose from $ 150 to $ 260 in a week or so. Only this month, prices rose by more than 50%, and the asset more than doubled from the beginning of the year.
Yesterday's news that JPMorgan will work with Ethereum ConsenSys, a blockchain company, was clearly optimistic about this asset, as it is ahead of other markets by a large margin.
The cryptanalyst “dave the wave” was looking for rollback levels for a possible buy in the area before the next steady movement above.
He also noted the possibility that ETH could reach last year's high of around $ 350 before he retreats.
Freebie from my alt page [fee based].
Possible outlook on ETH ...
Look to buy the retracement to the mean / cyclical curve. pic.twitter.com/DT6xgYKXjK
- dave the wave (@davthewave) February 12, 2020
ETH FUNDAMENTALS
In addition to yesterday's announcement of JPM, DeFi markets may spur Ethereum's development. Banks are in a difficult situation, and interest rates are becoming negative, which forces tech-savvy investors to look elsewhere.
Dai Savings Rates and other DeFi options can offer rates hundreds of times better than banks with relatively little risk involved.
After a two-year bear market, Ethereum prices reached a critically oversold level, dropping below what they were in mid-2017. Weak hands were weakened, and ICO's war chests were eliminated, making ETH a very bargain at these prices.
Consequently, a rally begins and prices begin to rise, first breaking the $200 psychological barrier and then $300. The next big barrier for ETH prices is $400 as this level has served as strong support/resistance during previous market cycles.
Proof-of-Stake still far from the platform, but it will also raise prices even higher, as it will provide more opportunities to make money from this new decentralized financial ecosystem. Read about the difference between POW and POS
Will Ethereum Reach $ 400 This Year? Add your predictions in the comments.