The long-term bullish prospect for Ethereum (ETH) price remains. So what are the reasons for this expectation? After the recent low, Ethereum price rose by 7%, hovering between $1,844 and $1,993. The upside test failed due to Bitcoin pressure. However, in the medium to long term, Ethereum (ETH) price is expected to outperform Bitcoin (BTC) price. In fact, the famous crypto analyst Lark Davis explains this for the new reason.
We have been expressing that ETH price is cheap below 1.900 for about 1 month. Of course, this is the general opinion in the market… In other words, it is no longer possible for the Ethereum price to stay below $ 1,900 for a long time. Therefore, the average can be reduced gradually below the critical level.
The price, which rushed to the level of $ 1,990 in a relatively large volume during the week, was suppressed by the profit sales of short-term traders. However, in the medium and long term, the price rise seems to continue.
7 Reasons For Ethereum (ETH) Rise
We need to have a good understanding of these seven reasons, which cover the lived and ongoing processes. Lark Davis lists his reasons for the rise as follows;
1. Ethereum ETF
Canada and Brazil have given ETF approvals for Ethereum. In the United States, multiple Ethereum ETF approvals are pending approval. If the SEC approves even just one of these requests, it is predicted that there will be a large fluctuation in price. Also, Anthony Scaramucci, CEO of SkyBridge Capital, recently announced that they will be filing for an Ethereum ETF.
2. Ethereum and Innovation
There is a very large DEX project on the network. It also implemented Optimism integration for Uniswap scaling support. This move has been a challenge to projects emerging as competitors to the Ethereum network.
3. Ethereum Halving Is Coming
Once the EIP 1559 upgrade is successfully completed, the selling pressure will be drastically reduced. In addition, the transition to the Proof-of-Stake algorithm will cause a serious contraction of the circulating supply. Of course, the shortage of supply will reflect positively on the price.
4. London Letter Fork (Forking)
London hard fork EIP 1559 is eagerly awaited. Next month this will happen successfully and some issues such as network charges will be resolved. Ethereum (ETH) is currently the best place for dApp and is doing its best to stay that way.
5. Ethereum Staking and Hold Sharing
The Ethereum network is the most reliable structure within the ecosystem. That’s why the staking feature is heavily anticipated when it’s fully unlocked. It looks like Proof-of-Stake will be active by the end of the year, of course, this will turn Ethereum into a hold economy.
6. Ethereum Demand
ETH 2.0 has severely reduced the circulating supply. The amount of assets locked in the contract reached 6.3 million ETH ($ 12 Billion) in a short period of 8-9 months. Moreover, institutional demand is rapidly turning to Ethereum. Many investors invest because they find the ETH network more beneficial.
7. Ethereum Beats Bitcoin
In many respects, Ethereum is much more advantageous, Bitcoin is lagging behind. While people use Bitcoin as a store of value, they see Ethereum (ETH) as the “future” that generates benefits. Of course, this situation can move Ethereum to the first place as the market value in the long run.
The opinions shared here do not recommend investment. Your investments in crypto money, which is a risky sector, may turn into losses. Therefore, you should decide for yourself the steps you will take by doing your own research.
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