- Despite stagnating under $400, Ethereum’s fundamentals remain strong
- ETH/USD is cooling off after a 60% rally in the last two weeks
- The price of Ether is changing hands at $375 at press time
Ethereum News Today – it appears the ongoing digital asset bull run has paused. This can be seen in one of the top assets. The digital asset Ethereum is currently stuck below the $400 level after posting a 60% rally in the last two weeks of trade. At press time, most of the rest of the crypto market is following Ethereum’s price action by printing red price candles.
According to data from CoinMarketCap, the price of Ethereum is trading at $375 at press time. The above area is a price position that is at least $40 shy (or 9.7%) of the coin’s YTD (year-to-date) high of $415 which was posted last week. There is a unique situation with ETH. Because the coin’s fundamentals are still strong despite the recent stagnating price of Ethereum. This suggests the crypto is now in a macro upward movement.
Ethereum’s Fundamentals Remain Bullish Despite Price Stagnation
As DeFi (decentralized finance) apps and other Ether applications continue to gain traction, the total number of daily transactions on the network has increased as well. According to data given by IntoTheBlock a Blockchain analytics firm, the daily number of ETH transactions has reached highs that have not been seen since the January 2018 peak bubble. Along with the rise in the adoption of ETH-based apps, the total number of transactions has been boosted by increases to the network’s block size maximum.
ETH’s positive daily transaction count isn’t the only key bullish on-chain metric for Ethereum. Other key metrics paint the idea that ETH/USD has a good short-term or medium-term future. Ether is currently seeing massive network growth as its total addresses have increased. The number “large transactions on the network have increased too.
More Buyers are Coming to Ethereum
When the price of a digital asset rises as fast as that of ETH, the incentive to sell naturally increases. Because much of Ether’s total supply remains in profit shows that there might be a large number of investors trying to take profit. No wonder the price is going down. Even though there are fears of distribution for ETH’s current supply, buyers are waiting to pick the crypto if needed. According to the head of DTC Capital, Spencer Noon, regarding DeFi and how it has impacted the demand for ETH:
“After speaking with institutional investors, find managers about DeFi in the last few weeks, I found out that they’re excited about DeFi. Which is why they’re buying ETH.”
Ethereum is currently the second-largest digital asset by market cap. It is currently down by 4.54% in the last 24-hours.