Two Reasons why Ethereum Traders are Confident of a Rally back to $3K
Ethereum is without a doubt the most active blockchain, boasting of transaction counts far exceeding Bitcoin's.
Given its market lead, the network is also the second most valuable.
Amid the drawdown of the last six weeks or so, ETH prices have been relatively steady while traders are remarkably upbeat.
What could be the cause?
Is Ethereum on the cusp of another leg up to $3k—or better?
It could be the case if technical and fundamental events lead. For one, Ethereum has a direct correlation with Bitcoin. Therefore, bringing on to focus Bitcoin's fundamentals—such as El Salvador's, institutional adoption, and favorable pro-crypto regulations-ETH could benefit from this inflow of capital, sustaining prices above $2k.
Meanwhile, traders are focused on the upcoming upgrade, the London Hard fork. This is the last enhancement before Ethereum officially becomes a Proof-of-Stake network. One thing with London is the integration of EIP-1559 that automatically makes ETH a deflationary asset. In the years to come, analysts project ETH to be more scarce than gold and BTC.
Ahead of this hard fork, ETH investors are positioning themselves for net longs, explaining the uptick in prices.