Ethereum (ETH), the second-largest digital currency by market capitalization, could be on the verge of a significant increase in value.
Positive signals
Technical data suggests Ethereum could potentially rise to the USD 1,900 limit. The coin is currently holding steady at its current price and given increasing demand, it looks like a strong upward trend is underway.
An important sign of this is the decrease in price swings on Ethereum, indicating a possible positive change in how the market views this coin. When volatility, i.e. the speed and magnitude of price changes, decreases, it could mean that the negative attitude towards Ethereum may be weakening.
When volatility decreases, it is often a sign that prices may start to rise and that the market is gaining more confidence in the currency.
In addition, Ethereum has also seen a decline in trading volume, which is an important measure of how much activity there is in the market and how interested investors are. Lower trading volume may indicate less selling pressure, which may create a favorable environment for price increases.
Fundamental factors
There are also some fundamental factors supporting Ethereum’s potential price increase. First, the implementation of Ethereum 2.0, an upgrade that will improve the speed, scalability and efficiency of the Ethereum network, continues to progress.
Second, the adoption of Ethereum as a payment option by large companies is on the rise. This adds to Ethereum’s legitimacy and usability, which could increase demand for the currency.
Third, the growth of Decentralized Finance (DeFi) plays an important role. The majority of DeFi projects are built on the Ethereum platform, increasing the demand for ETH for executing transactions within these projects.