The recent surge in Ethereum has impressed the market as it grew 22.29% in 24 hours. The price for Ethereum, according to CryptoTrend tool Crypto Online, is $ 170.
What fueled the recent surge in Ethereum?
Today we’re going to offer you 5 key points to help you understand what caused the recent price hike at Ethereum (ETH).
1. Investors love Ethereum!
According to @skewdotcom, interest in the ETH futures volume has doubled compared to the average of the past two weeks.
2. The Ethereum price is still undervalued!
Although we were surprised yesterday by the accelerated price hike by Ethereum, it still seems undervalued.
According to Glassnode’s observations, Ethereum’s MVRV rate is below one.
“The # Ethereum MVRV ratio, a metric used to judge whether the price is above or below” fair value “, is currently 0.8, indicating that it is currently undervalued.”, Glass node set.
It is important to note that the MVRV is the result of dividing the market capitalization by the realized capitalization. The main goal is to provide information about whether an asset is overvalued or undervalued.
Various experts use this metric to assess whether market participants are making a profit or not.
Glassnode therefore ensures that the price of the ETH should be $ 202 while the market value is below it.
3. Does increased trust cause the rise of Ethereum?!
Experts informed CoinDesk that the recent ETH price hike is mainly due to increased investor confidence in the ETH 2.0 update.
The update, also known as Serenity, is scheduled for July this year.
Mainly, the update promises to improve performance and increase security. It is important to note that this update has been under development since 2015, but has so far failed to gain traction.
Therefore, increased confidence in the cryptocurrency could have been critical to Ethereum’s recent rise.
4. Is the corona virus effect balanced?
The markets, both cryptocurrency and traditional, have recovered after the famous and dark Black Thursday. Among other things, this could be related to the decrease in pandemic deaths in Spain and Italy.
We also have to take into account that the situation in China has gradually returned to normal after the country has eased its blockade. The UK also informed the media of the decline in its infection rate.
Just as the spread of the pandemic around the world was the main cause of panic in the markets, calm now seems to be coming again. And with calm, the price of Ethereum increases.
5. Ethereum creates an ascending triangle
According to Cole Petersen, ETH has created an ascending triangle through which the price can rise to USD 200 in the short term.
This pattern was also identified by Josh Olszewicz on Twitter and explained that the recent outbreak could cause ETH to be around $ 200 in the coming days.
The recent surge in cryptocurrency activity could further fuel Ethereum’s upward trend. So we would see that the rise of Ethereum could be even bigger.
At the end we ask you What can we expect for Ethereum in 2020?