Ethereum is having itself a hot summer.
ETH started the day as the best-performing crypto in the top 10 by market cap. Yesterday, it jumped by 10%. Today, we can add another 10% on top of that.
The cryptocurrency is currently trading at a two-year high of $442 per coin. The last time ETH traded above this price was late July 2018.
Ether (ETH), Ethereum’s native crypto has been on an upward trend for almost 25 days, which further elevated this week. After initially failing in an attempt to break $400, the token fell to $367 only to then break $400 again, confirming the current bullish trend and as the digital asset heads for the $450 price mark.
There is currently no short-term resistance toward this march. The last time ETH registered similar prices was during the Crypto Winter crash of 2018 when the token bottomed out below $100, and the $300 mark became the unbeatable resistance from that moment on. Until earlier this year, that is.
The token is very much on the radar of the trading community and cryptocurrency enthusiasts as of late. The Ethereum blockchain is the infrastructure upon which much of the Web 3.0 activity runs, and the last few months of developments on Ethereum have been hotter than ever.
First, the DeFi industry has exploded in 2020, fulfilling the predictions made by analysts at CoinGecko and other experts who had their eyes on DeFi taking off this year, despite the March market crash.
The surge in popularity of decentralized exchanges, many of which run on Ethereum, is another factor. This month alone, trading volume on DEXs has exceeded the numbers reported for all of 2019.
In combination, a strong argument could be made that these factors are driving up the fundamental value of Ethereum. And with the long-awaiting Ethereum 2.0 upgrade drawing nearer, which is built to support greater trading volume more efficiently, ETH investors have plenty to be excited about.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.