Ethereum price rallies once again after recent flash crash

Posted: 20 April 2021 11:54 pm

Ethereum is showcasing gains of nearly 30% over the course of the last month

  • Ether’s short-to-medium-term monetary outlook appears to be quite strong at the moment, according to experts.
  • ETH continues to be faced with monetary resistance around the $2,400 range.
  • The total value locked (TVL) in the DeFi ecosystem is just over $58 billion.

After dropping to a relative low of $2,053 on April 18, the world’s second-largest cryptocurrency proceeded to forge a steady recovery, currently trading at $2,430, thereby showcasing a surge of nearly 10% over the last 72 hours.

How to buy Ethereum

Commenting on the premier altcoin’s future outlook and its price action in general, Sebastian Bürgel, founder and president of HOPR, an Ethereum-based privacy-preserving messaging protocol, told Finder that Ether’s near-term future looks quite bright, especially with the London hard fork looming large on the horizon. He added:

“The upcoming London fundamentally changes the economics of Ethereum with the keenly awaited EIP1559. EIP1559 is an overdue correction in favour of the users of Ethereum as it might absorb peak load without significant increases in transaction fees but we will have to wait for other layer-2 solutions and ETH2 developments to increase transaction throughput.”

And while some miners may be upset with the proposed upgrade — since it stands to cut up to 50% of their block rewards — Bürgel believes that the transition was inevitable and that EIP 1559 is a good first step to phase out mining entirely with ETH 2.0. Lastly, he pointed out that a crypto-economic network like Ethereum has to constantly balance the security budget required to keep the system secure and what miners are (over)charging.

Ether showcasing signs of stability

Providing her views on Ether’s fundamentals, Marie Tatibouet, chief marketing officer for cryptocurrency exchange, told Finder that the currency’s closest major resistance threshold lies around the $2,050 range but overall, market momentum continues to remain strong. She added:

“ETH isn’t overvalued yet, so a further growth back into its all-time high levels is definitely on the cards. Also, do keep in mind that the DeFi market is currently >$50B, and the way this sector is growing far outpaces the growth of the overall crypto market. This is why I believe that both the short-term and long-term future looks pretty bright for Ethereum.”

When asked about the network’s growing gas fee and congestion-related woes, Tatibouet pointed out that the only reason transactions cost more on Ethereum than competitors like Binance Smart Chain (BSC) is that they are not compromising on decentralization. “As things stand, if you want decentralization, then there is definitely a price to pay. It will be interesting to see how they mitigate these issues with Ethereum 2.0,” she added.

Lastly, there’s no denying that Ethereum has transformed into the core development platform of the crypto universe, with the ecosystem boasting the largest crypto developer base in the world. Furthermore, thanks to the continuous innovation taking place across the DeFi sector, and the rapid mainstream adoption of NFTs, it stands to reason that investors will continue to remain bullish on ETH at least for the foreseeable future.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Picture: Finder

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