As seen within the time period of earlier 30 days, the price of second most popular cryptocurrency Ethereum [ETH] has risen from $83 USD to $154.05 USD which is up by around 80% against the USD in a robust corrective rally.
Yesterday on 2nd Jan., following a 7% hike in its worth, Ethereum [ETH] surpassed Ripple [XRP] to reclaim its throne to the second most beneficial cryptocurrency within the international market.
Ethereum [ETH] Now Listed At The 2nd Position Replacing Ripple [XRP]
Two main factors have seemingly contributed to the short surge within the worth of Ethereum [ETH] in the past month: oversold conditions along with the upcoming hard fork of Ethereum in mid-Jan this year.
From early Nov. to mid-Nov., Ethereum under-went a steep decline in worth as its price fell from $220 USD to around $83 USD. Despite its recent 80% climb, the asset is yet to attain Nov. levels and would still need to increase by an extra 46% to rise back to $220 USD.
The market presented oversold conditions behind this sudden decline within the worth of Ethereum [ETH] from Nov. to Dec., relieving sell-pressure on the crypto assets and permitting the assets to recover.
In line with Alex Krüger, who is an economic expert and a cryptocurrency trader, the future hard fork of Ethereum known as Constantinople is increasing the demand for Ethereum [ETH], as the fork would cut back the block rewards of ETH from 3 to 2.
Notable outperformance of Ethereum [ETH] over Bitcoin [BTC] within the previous few weeks. There’s a reason for it: the future hard fork / supply reduction. Another BAKKT delay adds thereto, the trader ‘aforementioned‘:
The reduction of the block rewards of ETH restricts the quantity of ETH miners can generate, that within the long-run can cause a gradual decline within the potential circulating supply of ETH. As the supply of ETH goes down and the demand goes up or remains identical, the price of Ethereum [ETH] is predicted to rise.
Earlier on Christmas Ever, Krüger added:
“Ethereum’s upcoming hard fork is impending on block 7080000, around 16th Jan. 2019. The hard fork is expected to scale back the block rewards from 3 to 2, decreasing new ETH supply consequently. On the long-term, this seems optimistic.”
Krüger additionally outlined in his analysis that in previous forks, ETH exaggerated considerably in worth. Whereas the state of the market is considerably different than in previous instances, in considerations of the historical performance of ETH, the trader recommended that the upcoming hard fork might contribute to the increase within the price of the asset.
Explaining further, Krüger noted:
“On the Homestead fork, ETH exaggerated by 1150% within the 2 months prior [in each USD and BTC terms, as BTC was comparatively flat during that period). Price started a 50% reversal the day of the fork. Not suggesting one ought to expect identical –different market, different times.”
The Best Performing Asset – Ethereum [ETH]
ETH remains on the top of the best-performing assets in Dec. 2018, outperforming Bitcoin [BTC], Ripple [XRP], and Bitcoin Cash [BCH].
However, the valuation of the cryptocurrency market still remains at $130 Bln and it’s far from recoverying to previous highs, it’s still too early to conclude that Ethereum [ETH] has began to enter a mid-term bull rally.