One of the hottest cryptocurrencies, ether (ETH) is trading at an all-time high. The price has increased over 300% in the last month and it shows no signs of stopping with more people buying ETH than ever before. What caused this sudden surge in interest?
The “ethereum news” is a cryptocurrency that has been going up. The currency has seen its highest price since the first week of November, and it’s expected to keep going up.
Ethereum is soaring, propelled this time by its own momentum. The token’s price has continued to rise since the end of October, crossing the $4,800 mark for the first time in history only a few hours ago. The world’s second-largest digital currency, according to coinmarketcap, peaked at $4,822.36 after started the day at $4,619. The new all-time high reflects a year-to-date gain of 555.2 percent.
The 24-hour trading chart for Ether
The coin is now trading around its all-time high, which was established earlier today.
What pushed the price of Ether up last week?
Several variables, according to analysts, contributed to the ETH/USD reaching several high in the first week of November.
CME has announced the introduction of micro Ethereum futures in December.
The majority believe that the Chicago Mercantile Exchange Group’s statement about the upcoming micro futures offering had the most influence on ETH pricing. Last Wednesday, the company said that, pending clearance, micro futures will be available to customers in early December. Micro Bitcoin futures were first introduced by CME in May of this year.
Following the news, ether prices began to rise, making a new high on the same day and hitting many new highs on Thursday. Despite the fact that tiny Ethereum futures represent for just 10% of the whole asset’s value, they have a significant impact on the market. Micro Ethereum futures will provide investors a chance to mitigate their risk in addition to giving a way to generate rewards via speculation.
The number of active ETH addresses has increased.
The growing number of active addresses on the network is another reason for the rally. Indeed, according to Santiment, a blockchain analytics platform, the number of addresses increased by around 45 percent in October and early November. This rise, according to the analytics business, implies an increase in Ether’s utility.
“#Ethereum’s #AllTimeHighs keep on coming, as the second biggest #cryptocurrency asset has surpassed $4,643 for the first time in its 6-year existence.” The on-chain analytics team noted on Wednesday that “utility is a major clue as to why, since active addresses are up 45 percent compared to four weeks earlier.”
Santiment’s results coincide with those of Chinese cryptocurrency writer Colin Wu, who recently reported that Chinese merchants were using Ether as an inflation hedge. Because Bitcoin has long been regarded as the dominant asset in this use case, this might be game-changing.
Ether’s value might quadruple in the next two months, according to a Goldman Sachs MD.
Crypto analysts at Goldman Sachs, a worldwide investment banking firm, anticipate Ether will reach $8,000 by the end of the year. In a lengthy letter, the bank’s Global Market director Bernhard Rzymelka said that the token has moved in accordance with inflation break evens over the previous two years, implying that a price objective of $8,000 (almost twice the present amount) is realistic.
Rising inflation, according to Rzymelka, might be beneficial to the token rise. He especially mentioned the link between crypto and inflation rates, stating that Ether has “followed inflation” in the past and is closely correlated with inflation. Rzymelka also said that the bitcoin industry has matured, and that digital assets are destined to benefit from rising inflation.
Despite the fact that a regression was inevitable in the immediate term, the bank executive insisted that the token’s prognosis is remained good. “The analysis aligns rather well with the Ethereum chart, suggesting a late-stage rally with a longer-term market top ahead,” he said.
Raoul Pal, a former executive at the colossal bank, has revealed that he was long the token. Pal projected that the native token on Ethereum will reach $20,000 earlier this year, based on Metcalfe’s Law. According to the rule, the influence of a network is proportional to the square of its number of nodes.
This isn’t the first time Goldman Sachs has praised Vitalik Buterin’s project’s native coin. In July, the bank predicted that Ether will outperform Bitcoin as a store of wealth.
The first week of deflationary issuance for Ethereum
The Ethereum network experienced a lot of activity in the week running up to November. WatchTheBurn data revealed that the network has seen seven consecutive days of negative supply issuance for the first time. Simply put, more Ether was burned (taken out of circulation) than was mined (added to the supply).
Since August 5, when EIP-1559 was deployed, more over 811,000 Ether (worth approximately 3.85 billion at current prices) has been burnt and permanently destroyed owing to the London hard fork’s burning mechanism. Ether is now a deflationary cryptocurrency as a result of the implementation.
The incidence has been ascribed to the network’s persistently high gas costs, which EthHub co-founder Anthony Sassano says was not foreseen prior to the formal launch of Eth 2.0. In a Monday message, he also said that the London hard fork was not to blame for the sky-high gas prices, but rather that it had helped cope with the periodic surges that occur during high-demand periods.
“A deflationary ETH was not expected until The Merge due to the current PoW issuance (4.5 percent), but due to the on-going high fees, the Ethereum network is currently burning almost 13,000 ETH per day or $55 million at time of writing – truly insane when you think about it,” he wrote on The Daily Gwei.
The performance of the Ethereum market
For the previous week, the cryptocurrency market has been optimistic, with certain currencies reaching new all-time highs. Ether, in particular, has been on a roll lately, printing six consecutive peaks in a row.
The 7-day trading chart for Ether
Last Tuesday, the token broke over the $4,500 barrier mark before hitting a high of $4,664.91 the following day. Following a brief pullback ahead of the weekend, the token fell below $4,300 before rallying back to a new high over $4,800 today.
The “Ethereum Weekly” is a weekly newsletter that covers the latest news about Ethereum. The “ethereum 52 week high” is an interesting fact that happened in the first week of November.
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