As Ethereum breaches $200 is this a good moment to buy?
The high expectations around Ethereum may be influencing the price of the cryptocurrency. Experts believe that this year Ethereum will outperform other digital cryptocurrencies. The Ethereum price is currently in an uptrend. By breaking the $200 mark, ETH has managed to reach this psychologically important mark again for the first time in 5 months which bodes well for the future of the altcoin.
The performance of most major cryptocurrencies this year has been positive. While Bitcoin has already risen by 35% over the course of the year, established coins such as Ripple or Ethereum have increased by 50% and 60% respectively. Especially interesting is the latest Ethereum price increase. For the first time since September last year, ETH managed to break through the important $200 mark.
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Ethereum finally breaks $200
Ethereum’s performance last year was anything but splendid. While Bitcoin, for example, rose by 90%, ETH had to contend with price losses of 9 % in 2019. Nevertheless, many investors began to place their hopes in Ethereum last year. With the upgrade to Ethereum 2.0 and the increasing use of DeFi, the Ethereum share price should also benefit again in the medium term, especially if it can keep breaking important milestones.
Since the beginning of the year ETH has skyrocketed from a paltry $130 to almost $210 in just over one month. By breaking the $200 mark, ETH has managed to reach this psychologically important mark again for the first time in 5 months. The ETH price has also increased by 95% over a one-year period.
This shift is in stark contrast to the overall altcoin market. Analysts have widely predicted an “Altcoin Apocalypse” in 2020 but if Ethereum’s performance is anything to go by this outcome is far from certain. If ETH and other altcoins can continue to break barriers 2020 could shape up to be an interesting year for crypto investors.
Ethereum 2.0, staking and DeFi to provide a boost
This upward trend has been taking place for around a year now. It is likely to be bolstered by the Ethereum 2.0 update and the DeFi hype. These features and updates are important for a number of reasons:
- In addition to the technological progress and innovative aspect of DeFi, the topic of decentralized finance is particularly responsible for increased demand for ETH itself. After all, whether MakerDAO, Compound or other providers – they all need ETH as collateral. A factor that therefore drives demand.
- In parallel, another driver for the Ethereum course would be the topic of staking. As soon as the staking feature is activated on Ethereum 2.0, investors will need at least 32 ETH to participate in staking. This requirement is also likely to boost demand.
- Nevertheless, ETH, with a current price of almost $210, is still 85% below its all-time high of $1417 in January 2018.
Can Ethereum go to the moon?
As far as the current Ethereum share price is concerned, @crypto_rand posted a chart analysis from ETH and commented that ETH can expect a “moonshot” if it breaks through the $200 mark. Besides Cryptorand, the analyst Galaxy also weighed in on the course of Ethereum.
According to him, the course of the last weeks shows that Ethereum has already found its ground. It is currently in a strong upward trend, which in Galaxy’s opinion could push ETH back into higher leagues and beat the downward trend that has been ongoing since 2018.
(Featured image by WorldSpectrum via Pixabay)
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