Ethereum – the largest altcoin on the market – has had two difficult years. Ethereum is definitely out of up-trend. From a historic high ($1,500) to $80. In 2019, it bounced off the bottom, but so far has not shown any massive bullish momentum. Even if we disregard the mad leap of January 2018, and expect a historical high somewhere around $800-900, the Ethereum is still very low.
In 2020, however, we recorded quite good profits. The Ethereum woke up then, and even surpassed the $200 resistance this week. It is currently trading at $222. Also looks like it will grow further in the coming months. It can also get Ethereum back to up-trend. This is due to the huge number of strong positive fundaments that have accumulated in Ethereum over the past months and, of course, the altcoin rally.
After dominating in the altcoin rally, Ethereum recently emerged from a two-year downtrend. Let’s see which fundamentals are causing this bull run.
DeFi (Decentralized Finance) is going up during 2020. Since January, their capitalization almost doubled, and exceeded one billion dollars just yesterday. Of course, many people speculate that this is the reason why Etherea’s price has risen in recent days.
The DeFi ecosystem has a great influence on Etherea’s price. These are applications that already have real use. Be it decentralized stablecoin Dai from MakerDAO, Synthetix, Compound or other significant projects in which hundreds of millions of dollars are locked.
When Litecoin depicted the Cup & Handle formation on the chart a month ago, followed by almost 100% bull run (which is not finished yet), and it is quite possible that Ethereum will react in the same way and go back to up-trend.
Ethereum 2.0 affects up-trend
All of this is nice, but we would not expect any positive fundamentals if the developers did not work hard on this project. The Ethereum blockchain has seen several significant improvements over the past two years that have made it possible to scale better.
But more importantly, Ethereum 2.0 is finally approaching – network upgrades that developers have promised us since ICO. Ethereum 2.0 was tested with fully functional staking, which works beautifully, and has created over 22,000 validator nodes. It allows increasing of speed and efficiency for the entire blockchain. Also, it counts to Ethereum up-trend change.
Ethereum Trust Aliance – ETA
The success of Etherea is closely linked to the success of projects running on this platform. Various low-quality coins during the ICO hype in 2017 (and especially after it) sunk the Ethereum. To avoid such a situation happening again, it is necessary to create a quality rating system.
The newly created Ethereum Trust Alliance ETA aims to create quality ratings for all Ethereum ecosystem projects. In the near future no one will have to invest blindly. Thanks to ETA, the quality of the project can be easily verified.
Read more about some of the Ethereum characteristics right here: https://en.wikipedia.org/wiki/Ethereum#Characteristics