Ethereum Price Hits All Time New Highs - Supply Drop Might Be Reason.
2021-04-22 | Big Bob
![Ethereum Price Hits All Time New Highs - Supply Drop Might Be Reason.]()
The second leading cryptocurrency Ethereum [
ETH] has rallied to new lifetime highs today on Thursday on speculation that an impending blockchain upgrade might
end in a
drop by supply.
The native cryptocurrency of Ethereum’s blockchain rose to a record high of $2,564 USD within European trading hours, toppling the earlier peak price of $2,546 USD reached on 16
th April, consistent with
CoinMarketCap data.
“Ethereum’s net annual issuance will drop substantially following the Phase 1.5 ETH 1 to ETH 2 merger,” Messari’s research Wilson Withum
tweeted.
With the upcoming EIP 1559 upgrade, Ethereum will “become a deflationary asset,” Nick Spanos, co-founder of Zap Protocol, added. “This feature will reduce the coin supply and have a corresponding effect on
the worth, forming an attraction point for more buyers.”
Ether has been on a tear
lately, outperforming Bitcoin by
a good margin. While the native cryptocurrency of ethereum’s blockchain has gained 35% this month, while on the other hand, Bitcoin is down about 8%.
Analysts studying Ether-Bitcoin [
ETH/
BTC] chart patterns say ether’s outperformance could continue
within the near term.
“ETH/BTC is getting
tons of attention
as it broke above its long-term resistance of 0.04,” Pankaj Balani, co-founder and CEO of the Singapore-based Delta Exchange, explained. “We might see ETH-BTC
erupt 0.10. Expect sharp moves though, primary to 0.06
within the coming weeks and subsequently to 0.1.”
ETH/BTC is presently trading at 0.046 on Binance,
consistent with data provided by TradingView.
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