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Ethereum (ETH) has been seeing some significant growth as of late as the crypto asset had a steady increase above a couple of resistance levels. The cryptocurrency has hit its best level yet against the U.S. dollar and bitcoin (BTC) in recent months and if this positive trend continues, likely, the second-largest crypto could finally overtake the top token of the crypto space.
Ethereum’s impressive performance
Ether – the Ethereum network’s digital currency – carried on with its price rally resulting to over three months of record highs against the above-mentioned currencies. Reports are suggestive that the ether-bitcoin exchange rate went up to 3.13 percent as this was the first time to reach 0.07475 since June 9.
Also, bids for both ether and bitcoin surged by up to 3.4 percent which translates to $3.546 making it the highest since May 18. With that in mind, this featured a whole new upside sentiment within Ethereum’s market. This, after it consolidated sideways for over three weeks already.
In line with this, ETH’s top competitor – Cardano (ADA) – experienced the same thing following altcoin’s impressive price rally last month. This occurred during the fall of its market dominance that dipped to 4.26 percent as of writing from its original 4.54 percent.
It was also noted that it is within the same period where Ethereum saw its market dominance jump from 18.71 percent to 19.65 percent.
Further, Ethereum’s price shooting up above the $3,500 mark may well seem to tally with a decrease in ether reserves across all exchanges. That said, the analytics firm of CryptoQuant revealed that the amount of ETH being hodled in exchange wallets went down from 19.45 million on August 18 to 18.75 million at the time of writing.
Analysts say it’s bullish
Crypto pundits, on the other hand, deemed such decline as a bullish one. They explained that traders withdraw their coins from exchanges for reasons that they opted to hold on to them rather than selling them for other crypto assets.
Ethereum’s London Hard Fork
Additionally, there’s a new Ethereum update. Known as “London Hard Fork,” it is said to have introduced a protocol that cuts a fraction of its gas fees. By the time the update went live on August 5, EIP-1559 has removed 156,986 ETH that’s worth over half a billion dollars out of supply.
Also, Ether has surged over 380 percent this year as the rising decentralized finance (DeFi) and the non-fungible tokens (NFT) have further increased its gains. CME Group’s Director of Equity and Cryptocurrency Product Development Payal Shah stated that Ethereum is equivalent to DeFi that gives its users the ability to trade, borrow, and lend directly assets to one another minus the involvement of other entities like banks.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
