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Cryptocurrency ETH has updated its annual ...

Cryptocurrency ETH has updated its annual maximum, up to $ 300 is at hand
CONTENT

  • Ethereum sets new year high amid strong bullish trend

  • ETH growth is driven by a combination of fundamental and technical factors

  • Unexpected popularity puts the Ethereum network on the brink of technical capabilities

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The second-largest cryptocurrency by market capitalization, ETH, has tested a new high of 2020, breaking the resistance in the area of ​​$ 285. However, an unexpected rise in popularity may backfire..

Cryptocurrency ETH has updated its annual ...

Wave to the moon?

For almost two months, ETH sat in a narrow range, constrained by resistance at $ 240, it is not surprising that a break above this mark provoked a large-scale rally, and the summer for investors has ceased to be languid.

Ethereum began to rise on Wednesday following a sharp and unexpected jump in Bitcoin above $ 9,300. However, if the first cryptocurrency slowed down after the breakthrough of $ 9,500, ether did not stop there and on Friday updated the annual maximum at $ 287.80.

At the time of this writing, ETH / USD is trading at $ 283.17. Over the course of the day, the coin has risen in price by more than 4%, and over the week the growth was 21%, and this is the best indicator among the twenty largest cryptocurrencies. Now, the new annual high has turned into the nearest resistance line for ETH. Recall that in mid-February, ETH reached $ 285 after which it began to decline.

Cryptocurrency ETH has updated its annual ...

ETH / USD chart. Source: TradingVew

If the coin manages to gain a foothold above this level after the correction, then soon we will catch it in a new range above the psychologically significant $ 300 mark. Meanwhile, according to cryptanalyst Crypto Michael, a breakthrough of this level will very quickly lead the coin to $ 470 and even $ 500 /

It’s not just about technology

However, Ethereum’s rise is driven not only by the technical picture that traders see on the charts. Fundamental factors also contribute to the growth of the second largest cryptocurrency, in particular the meteoric rise in popularity of DeFi protocolsDecentralized finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to open, efficient and … More , borrowing and P2P trading of digital assets. If 2017 became the year of ICO for the crypto industry, then 2020 is definitely under the sign of DeFi..

In addition, the popularity and volume of stablecoin trading is growing, many of which are also based on the Ethereum blockchain. For example, earlier this year, Tether, or USDT, surpassed XRP in terms of market capitalization to become one of the top three. In fact, it is thanks to stablecoins that more money is now flowing through the Ethereum blockchain every day than through Bitcoin..

In addition, according to the analytical company Santiment, since Wednesday, large ETH holders have transferred about 700 thousand coins from their wallets to exchanges, which may indicate the beginning of a massive pumping of the main altcoin..

Blessing or curse?

But this barrel of honey has a fly in the ointment. The growing popularity of DeFi protocols and related tokens is a double-edged sword. The Ethereum network is working to the limit of its technical capabilities, while DeFi and Tether are now consuming almost all the network bandwidth..

Cryptocurrency ETH has updated its annual ...

Ethereum risks collapsing under the yoke of its own success if the team does not have time to deploy the second version of the protocol, which should solve the main problems with scalability. Earlier, the editorial staff of BeInCrypto reported that the developers plan to launch the final version of the ETH 2.0 testnet in August this year.

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