The cryptocurrency market has been on a bullish streak since October as bitcoin, ethereum, and other altcoins hit new all-time highs, and some are even using their old all-time highs as new support prices. The trip to the moon is on and the market strongly supports the trend. Ethereum, the number one altcoin based on price and acceptance, hit an all-time high the same week bitcoin hit $64,000 on remake, a cryptocurrency exchange. And the statistics show that this movement will continue.
SummaryWHAT IS THE ALTAIR UPGRADE?BUT HAS THE MARKET ALWAYS BEEN BULLISH?WHY ARE WHALES AND INSTITUTIONS RAISED ON THE ETHERE?WHAT HISTORY SAYS ABOUT ALL THE TIME OF ETHEREUMWHAT MAKES THE 2017 TREND DIFFERENT FROM 2021?THE ETHER 2.0 GAME CONTRACTWHAT ANALYST SAY ABOUT THE FUTURE OF ETHEREUM?WHAT SHOULD WE EXPECT IN THE COMING WEEKS?There are a plethora of reasons why the price of Ethereum has reached an all-time high, and the main reason for this rise is the successful upgrade of the Ethereum system.
The Ethereum blockchain and its major networks have come under heavy criticism for the high cost of gas fees they incur. Due to these complaints, Ethereum co-founder Vitalik Buterin dedicated himself to moving Ethereum to a new mainnet.
First, if you don't know what a mainnet is, here's a quick definition:
A mainnet processes the transfer of digital currencies, Ethereum in this case, from person to person – from sender to receiver. A mainnet is like a splitter that ensures that whatever is sent by one person is received by the other.
So, with Ethereum moving to a new mainnet, transaction fees will be reduced. The altair upgrade is in line with Ethereum's plan, as announced in the Ethereum Foundation blog, to fully transition from proof-of-work to proof-of-stake. Altair's upgrade has been well received by a market that is desperate for good news to change market sentiment.
Stats from credible trading platforms viewed reveal that Ethereum price suffered a price decline in the early hours of November, i.e. after Ethereum had seen a steady positive rise since October. The price of Ethereum fell to around $4,200, but when the whales entered the market, they increased the price to around $4,500 in less than 24 hours.
As mentioned earlier, the upgrade was a major factor in Ethereum's price surge, but more importantly, several news and activities on the Ethereum blockchain prompted whales and institutions to buy Ethereum.
From the growth of NFTs to shrinking space on the Ethereum blockchain, the utility of Ethereum is increasing day by day, and whales and institutions are aware of it. While many people still believe that Ethereum is a great store of value, the potential for it to become a currency is high. NFTs are becoming the taste of the elite class. Therefore, if people want to buy NFTs, they need Ethereum to buy them. In the long term, Ethereum will be more than just a store of value for an integral digital currency that countries and organizations will adopt.
The predictions of analysts and cryptocurrency traders are that if the price of Ethereum continues its price surge until the end of November, it will be eight consecutive quarters where the number of r altcoin has increased.
When it comes to cryptocurrency, history plays an important role in market movements and the sentiments that guide the decisions of traders and investors.
While we can't rely on history alone — and in this case, we can't rely on it — there are lessons we can learn from the past. In 2017, before the cryptocurrency bullrun, the price of Ethereum had reached its all-time high at the time, and the same conditions are what we are experiencing now.
The trend of 2017, while not the same as what we have now in 2021, the correlations cannot be denied. Therefore, learning from the bull run of 2017, the price of Ethereum will rise in the coming months.
In 2017, there weren't as many whales and institutions buying Ethereum, but that has changed drastically. Now, the Ethereum blockchain is powering massive projects, and as a ripple effect, big players are buying up Ethereum's native currency, ether.
Ethereum planned to switch completely to the new mainnet, which operates with proof-of-stake, and the transition motivated Ethereum holders to invest their Ethereum. Over 8 million Ethereum have been staked, which has led to a drastic reduction in the number of Ethereum in circulation and, in turn, caused a price spike. the simple laws of supply and demand come into play:less supply, more demand, price spikes.
The series of projects on the Ethereum blockchain and the growing demand for NFTs, coupled with the influx of whales and institutions, has led analysts and cryptocurrency traders to predict that the price of Ethereum will reach $10,000. before the end of the year. . Forecasts are in line with bitcoin price rise.
Now, although the price of bitcoin does not always reflect that of Ethereum, there is a strong correlation between the performance of Bitcoin in the market and that of Ethereum.
Some traders, when performing technical analysis, often pit the price of bitcoin against that of Ethereum to predict where the price will swing. The trend informs their decision on which direction Ethereum price will head.
Historically, the cryptocurrency market is bullish in November and December, and recent market trends show how it could continue this year. However, as at the time of this article, the prices of bitcoin and Ethereum, as well as other altcoins such as Solana and Cardano are experiencing declines.
There are a plethora of reasons for the recent market decline, one where Ethereum is selling for $4,300, down from a record high just fourteen days ago, and bitcoin is selling for $60,000 on redot.com.
The market decline has also affected altcoins such as Solana, BNB and Cardano.
While the market is dripping red right now, no thanks to the series of market news and activity, ranging from President Joe Biden, the President of the United States, signing the infrastructure bill to the Massive profit taking based on news from the taproot to the news that Twitter won't be adding bitcoin to their balance sheet, the future still looks bright. The decline, analysts say, will not last long. So, in the coming weeks, we expect the price surge to continue and new all-time highs to be reached.
