Ethereum (ETH), the second-largest digital asset in the cryptocurrency world, is hitting another all-time high (ATH), hitting $4,000. In particular, Ethereum posted a remarkable growth rate of nearly 100% in just 30 days. In fact, traders who had previously bought Ethereum when the price was still low are now delighted.
This sparked a reaction from cryptocurrency enthusiast and investor Larc Davis, as he remembered the time when Ethereum cost less than $200. He considered the good old days to be good times.
As of now, Ethereum is trading at a bullish price of over $4,000. Yes, this is a price level that opens the way for ETH to set up another ATH. However, due to this sharp rise in the price of the Ethereum network, analysts have predicted that Ethereum could reach the $5,000-10,000 range.
In addition to the market performance of ETH, the network is on track to complete the development of Ethereum 2.0 technology. This technology will solve the existing problems ETH is currently facing with gas rates.
As a result, more traders and investors can maximize their funds when purchasing cryptocurrencies while receiving lower fees. In fact, if these network improvements become a reality, large-scale adoption of ETH is inevitable.
Also, as Bitcoin rises from a downtrend, it is also attracting attention in the cryptocurrency market. For this reason, Bitcoin is now a few blocks away from rallying again above the $60K bull price. If so, 2021 will truly be the year of cryptocurrency that no one should miss.
On another note, Ethereum Classic rose more than 250% last week, hitting a new all-time high of $167.09.
Some investors have wondered what caused the recent surge in ETC prices. Several experts and analysts have suggested several reasons that may have contributed to the price increase.
There are three main reasons why ETC prices are rising:
Season of Altcoin
Some analysts predict the altcoin season will begin in early 2021. In fact, the price of Bitcoin stayed in the $50,000-$60,000 range for a while. This has led some intrepid investors to seek out undervalued altcoins that could lead to faster realization of returns.
A noticeable increase in overall cryptocurrency adoption could also have a positive impact on altcoins. Sheldon Evans, a YouTuber and analyst, believes that cryptocurrency games have a positive net worth. This means that instead of having only one super crypt, one growth leads to the growth of all cryptocurrencies.
Forthcoming Ethereum 2.0 Upgrade
Ethereum Classic is very similar to its current sister blockchain, Ethereum. However, when the Ethereum 2.0 update begins, the protocols of the two blockchains will be different.
While Ethereum moves to a Proof of Stake (PoS) protocol, ETC maintains the Proof of Work protocol. Speculators believe that ETC will be a good alternative to PoS networks and that this will increase the relevance of ETC.
Likewise, some analysts believe that ETC has a high appreciation value. This is because ETC supports the original Ethereum blockchain. The ETC utility does not match the current ETH blockchain, but it nonetheless represents a part of blockchain history.
For all these compelling reasons, only time will tell whether altcoins can sustain their current bullish rally.
Currently, Ethereum Classic is trading at $121.23 with a 24-hour trading volume of $25,220,546,385.
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