Ethereum Reaches For The Moon Carrying BTC, XRP And The Entire Crypto Market Along

Ethereum Frozen


Ethereum had a tough time in 2018. The price of ETH fell dramatically against the USD due to many factors like scam ICOs, increased number of smart contract platforms, failure of many ICOs that were hosted on the Ethereum blockchain, etc. As the price and market capitalization of Ethereum fell, it lost its position as the second largest cryptocurrency per market capitalization to XRP. For more than one month, XRP held this position.


Ethereum Is Soaring Against The USD


Yesterday, Ethereum started rising against the USD. Soaring higher and higher, ETH was able to take the second place from XRP once again. The rise in the price of Ether influenced the entire market. BTC, XRP, and almost all top cryptocurrencies recorded gains. Over a 24 hour period, ETH went up by 12%. Within a 30-day period, it is up by 80%. The rise in the price of ETH is most likely due to the upcoming Ethereum constantinople hard fork as it has increased the demand of the ETH token.


As the price of ETH went up, BTC increased by 4% while XRP increased by 3%. After the hard fork, rewards for Ethereum miners will be reduced from three to two Ether per time and the block time will decrease subsequently making the network faster. This update will be done by January 16th 2018 and it will mark Ethereum’s transition to proof-of-stake from proof-of-work.


Keep in mind that the fact that a cryptocurrency is getting forked doesn’t always make the price rise. In November, the BCH fork didn’t make the price of the cryptocurrency rise. In fact, it dragged the price down and carried the entire cryptocurrency market as well. Even when Bitcoin Cash forked from Bitcoin in 2017, the price of BTC fell by 3%.


Also, this rise in the price of ETH may only be temporary. There is no guarantee that ETH will keep soaring after the upgrade is completed. Everyone is happy about the ETH price rally because ETH suffered a great deal in 2018 falling by more than 80% of its all time high. Many experts, including Ethereum’s co-founder, Joe Lubin, called a cryptocurrency bottom during the price crash in December 2018. This was followed by a lot of panic in the industry. The bear market was so bad that ConsenSys had to downsize and change their strategy.


In December 2017, Alex Krüger also said that Ethereum will be bullish soon because of the upcoming hard fork. He said there will be a painful adjustment period that will be followed by less mining supply. This will have a bullish effect on the price of ETH. ETH’s price rise gave the industry a jump start for 2019. Hopefully, this might be the end of the cryptocurrency winter that started last year. This will also lead to more development of the industry.


Ethereum (ETH) Price Now


At the time of writing, ETH was trading in green but correcting lower against the USD at $150.16. It is up by 1.01% against the USD and down by 0.09% against Bitcoin (BTC). Still holding the second position firmly, ETH has a market capitalization of $15,642,280,842 and a trading volume of $3,107,346,809.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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