Ethereum (ETH), one of the main digital currencies on the market, reached the resistance mark of US$1,900, a peak that had not been seen for four months. This significant increase in price has caught the attention of investors and enthusiasts, being driven by a combination of factors both general to the market and specific to Ethereum itself.
Despite Bitcoin (BTC) experiencing a 30% surge this month, surpassing Ethereum’s 17% rise in value, the digital currency that has often been referred to as silver to Bitcoin’s gold has shown remarkable resilience.
History tells us that Ethereum often follows Bitcoin’s trail in its gains, and this time the situation looks no different. Furthermore, the possibility of a spot ETF for Ethereum, following in the footsteps of Bitcoin, is an increasingly close reality, as suggested by the Securities and Exchange Commission’s (SEC) recognition of the deposit of the Invesco Galaxy spot ETF.
While Bitcoin struggles to surpass the US$36,000 barrier, Ethereum is taking advantage of the moment to advance in relation to BTC. The anticipation surrounding Devconnect, an event in Istanbul dedicated to Ethereum developers, also contributes to market optimism, despite the Ethereum Foundation not actively promoting the event.
The situation, however, is not unilaterally favorable. Ethereum supply increased 0.16% on a quiet Sunday, although it saw a 0.005% decrease throughout the week. This mixed picture reflects an ongoing transition in the Ethereum network to secondary layers, aiming to optimize the use and efficiency of the blockchain.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.