Ethereum USD closes in on ATH. What happens next?
All eyes were on Ethereum today as the world second largest cryptocurrency made a push for a new all time high.
At time of press, Ethereum was trading hands for $3,782 a 24 hour rise of just 1.28%. Compared to other crypto gains this may sound small but the price of Ethereum has a solid floor and has been a consistent performer lately gaining 11% in the last month and 102% in the last quarter alone.
Ethereum hit an all time price high in May of this year when it topped out at $4,170 before falling over 100% to $1,787 at the end of July. Since then there has been a steady increase week on week to the price we see today.
One of the catalysts for this strong and stable growth was the much anticipated Ethereum Improvement Protocol upgrade (EIP-1559) which saw Ethereum begin the transfer to a more efficient, cheaper and greener Proof of Stake mechanism rather than the outdated Proof of Work model it has been using.
The transfer to the new system is anticipated to take another 6 months to fully complete however as each project milestone falls investor confidence continues to increase. This was evident in the last 24 hours as $1.348 billion worth of Ethereum was transferred in 15 huge transactions. Although impossible to identify who was moving and where the Ethereum was going these colossal sums go some way to highlight the massive amount of money involved in the Ethereum network.
Alternative future investments
With many traditional investors beginning to question the validity of gold and silver, Bitcoin and Ethereum and beginning to be seen as strong alternative investments. Furthermore, Ethereum has more appeal than Bitcoin due to the ever increasing eco-system being built on top of the world largest smart contract network.
As we transgress through Q4, many people believe we are on the cusp of seeing massive institutional investment into cryptocurrency and digital assets due to their cost and time savings.
With the market poised and more network upgrades scheduled for the next couple of months allowing for further utility, Ethereum certainly looks as if it could have a very interesting future indeed.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.