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- Ethereum dips to $1800 after strong resistance from Bitcoin at $40k for a significant period
- Q1 results of Ethereum are stupendous for traders to anticipate big movements or a bull run
- Bitcoin and Ethereum have yet again shown a strong correlation in turbulent periods of trading for the umpteenth time
As the Bitcoin price plunged below $30k for a brief period on May 19, 2021, Ethereum also took a considerable hit. It fell below the $1800 mark where it has seen a bull run and reached $4370 within two weeks. Expectations were so high that it could even reach $5000, but Elon Musk had to play Chinese whisper. Musk tweeted that Tesla will not accept payments in cryptocurrencies as it leads to excessive energy consumption. Moreover, to protect the interests of the retail investors, Chinese regulatory bodies put a blanket ban on the speculative trading of cryptocurrency in any form.
Ethereum is about to upgrade with Altair for the better
Ethereum developers will have already undergone a hard fork, or a system-wide upgrade comes July or August. However, the plunge has not helped the gas prices as they shot the roof with each transaction carried out. It takes $38.1 on average to mine Ethereum with regular software. Validators have successfully run the Ethereum 2.0 Beacon Chain for more than six months now, and the latest upgrade will only carry out a bull run in the markets.
Later this year, it also plans to shift to a PoS protocol with the permanent fuse of the Beacon 2.0 chain. The upgrade will entail light client functionality for a smooth user interface throughout the system. Experts feel that Ethereum is just six months away from shifting to a Proof of Stake (PoS) network and further extending a bull run.
First-quarter of 2021 has been very good for Ethereum
The network revenue increased 200 times to $1.7 billion in the first quarter, while the annualized revenue run rate stood at $8.6 billion. The daily active addresses increased 71%, and staked Ethereum crossed the 3.6 million mark. Stablecoin value on Ethereum multiplied by more than five times to $41.9 billion. The fabulous Q1 results were capped off with Canada approving four ETFs for trading via Ethereum.
The year has been good so far, as the key points noted were high security and scalability. The software update by a core development team led to the introduction of a burn mechanism that can help reduce gas prices.
Understand Bitcoin for more clarity on Ether prices
Traders need to understand the bigboss, Bitcoin, to trade well in Ethereum. There is a positive correlation between the two, as was evidenced during the recent crash. Gauge the average costing method more closely to track price movements on either chart. The future is quite unknown, while the present is so volatile that it is unsafe to place a safe bet. Ride and maneuver the curves gently to make exponential gains.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
