Despite a sharp drop in an overnight session, it seems that Ethereum is on track to hit a new record in the near future.
Ethereum has received a hard hit in last night’s session by diving 10%, which is not an easy thing to get by. Now, the price is 4% lower, but Ethereum is not lonely on this path – the entire cryptocurrency market has dropped over 5% in the past 24 hours. Whether the reason for it is the bubble burst that the analysts were warning about or something unrelated, the investors are reluctant about what to do next. Still, Ethereum was able to jump over 1.000% since last year, which is not something that should be taken lightly.
Despite a difficult start to the week, Ethereum was trading over 8% higher compared to last week, hitting as high as $1.780 at one point. Based on this information, the investors are certain that the digital asset will soon reach the $2.000 mark, as well. Despite some recent difficulties, it is safe to assume that we should not discourage Ethereum just yet. The biggest reason for the bullish sentiment of Ethereum is the fact that its supplies are still solid, the experts are claiming. Therefore, the slight drop in value from $22 million on January 1st of this year to the current $21.8 is not something to be concerned about.
The Supply Advantage
A strong supply of Ethereum that remains solid despite difficulties is one of the biggest reasons for the fact that the digital currency is tracking well on global financial markets. Despite some recent changes in fees, Ethereum investors are hopeful and the demand remains high for the digital coin. Last week, Ethereum has also experienced one of the largest transactions of over 1.26%, which is a record since the digital currency was first introduced over 7 years ago.
The main reason for Ethereum going above the $1.700 mark for the first time is precisely the steady supply of digital currency in the past couple of years. This is not something that Bitcoin, even, could take pride in – since this digital currency is based on an entirely different system of providing and releasing its coins. This is one of the many reasons why Ethereum is attracting the attention of so many new clients on the global market. As a result, the Ethereum portfolio is tracking at $93.3 million, so you be the judge of it!
A Couple of Rough Patches
After the initial sharp drop at the end of January, the experts were claiming many factors coming to play here – from staking and yield farming to buyers sending coins to cold storage. Perhaps the last one of the most significant one – considering that the Ethereum owners are basically trying to achieve a similar thing to the Bitcoin miners. Still, these two digital currencies could not be more different in all ways and forms, which is probably the main reason that brought Ethereum’s tumble in the first place.
When we look at Ethereum’s volume in the past couple of months, it is clear that the transactions were up from their regular averages of last year. The daily volume reached around $6 billion daily, which is over 240% higher than compared with December of last year. There isn’t a lot that is left to say about this situation other than that Ethereum is definitely taking both investors and market analysts by surprise. The predictions of a bright future for the digital coin are still going strong, and only time will tell if they will come to reality. So far, the current situation on the market is looking good when it comes to Ethereum’s performance on a daily basis, as well as its overall volume. The bullish sentiment is definitely working in its favor, which is why there are new investors emerging daily, especially the ones with no previous experience or desire for trading cryptocurrencies.