Crypto
Why Ethereum Was Up 30 Percent in February
For Bitcoin, investors are currently eyeing a hoped-for new all-time high, which is only 25 percent away from replacing the previous mark of $69,000, also from November 2021. For Ethereum, a new all-time high would currently require a 40 percent increase from current prices. Some, therefore, still see ETH as undervalued despite the recent rally and also refer to the points compiled above.
Ethereum (ETH) beats even Bitcoin (BTC) in terms of price development this month with a 30 percent increase. The number two cryptocurrency is on a run, the causes of which concern investors.
At the beginning of the week , Ethereum (ETH) was scratching the $3,000 mark in its upward trend and has already recorded a 30 percent increase for February. The second most important global cryptocurrency Ethereum thus underlines continued interest from investors.
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Like observers, they also look at fundamental data on ETH that allow for optimism:
– The final testnet for the upcoming Ethereum Dencun upgrade went live as planned on February 7th. The integration of Dencun into the Ethereum mainnet could take place in March. Dencun is intended to make the Ethereum ecosystem faster and noticeably reduce fees through closer integration of Layer-2 solutions.
– These Layer-2 solutions such as Arbitrum (ARB) and Optimism (OP) are currently rushing from one all-time high to the next on a daily basis in the important TVL indicator. This shows how much capital investors have deposited in the Layer-2 solutions for ETH. L2Beat data currently shows $27 billion.
– Analysts look at Ethereum trading volumes, among other things, as an indication of interest from investors and markets. ETH is currently in demand here with more than 20 billion US dollars a day, but has not yet come close to the annual highs of mid-January with a good 30 billion US dollars a day.
– The fluctuations in January were attributed to the fact that, following the approval of Bitcoin ETFs, Ethereum ETFs in the USA could also receive the green light from the Securities and Exchange Commission (SEC) at the end of May. If this scenario comes true and follows that of Bitcoin ETFs, new capital is likely to flow towards Ethereum and thus provide positive impetus for the price curve of ETH.
– Looking at futures to make forecasts for cryptocurrencies is also popular among analysts. Coinglass data currently holds $10.5 billion in open interest on Ethereum futures, a value close to the $11 billion level seen in November 2021. At that time, ETH reached its all-time high of almost 4,900 US dollars, which is still valid today.
Conclusion: Ethereum is brimming with future opportunities
For Bitcoin, investors are currently eyeing a hoped-for new all-time high, which is only 25 percent away from replacing the previous mark of $69,000, also from November 2021. For Ethereum, a new all-time high would currently require a 40 percent increase from current prices.
Some, therefore, still see ETH as undervalued despite the recent rally and also refer to the points compiled above. There is music in Ethereum – this can probably be stated at the moment without neglecting possible risks such as non-approval of ETFs or problems with the Dencun upgrade.
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(Featured image by Jonathan Borba via Pexels)
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First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
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