It seems like we have been writing a lot about Ethereum recently, but it’s breaking new records again. ETH is up over 37% in the last 7 days, trading at $3963 as of May 9th at 3h AM EST.
Meanwhile, Bitcoin is consolidating and Altcoins like Doge are pumping, but eventually, that money will be flowing back into ETH/BTC, leaving the newcomers holding the bag.
Over the last 6 weeks, Ethereum has gained over 100% on Bitcoin on the Ethereum/Bitcoin chart. This recent move upwards signals very bullish momentum, and if you look at the Bitcoin dominance freefalling (Down to 45% from a high of 70%+), and ETH gaining so much over BTC, those are very clear signals for me that Ethereum is here to stay, is it the backbone of many blockchains, the first cryptocurrency to ever deploy smart contracts.
If we can hold this level and consolidate here, that would be a great step leading into this summer’s changes. Obviously, you should act with caution, because the narrative in the crypto space can change very quickly. I will be watching a close eye on the valuation of Ethereum against BTC in the upcoming days.
Obviously, short-term moves are very hard to predict, but in the grand scheme of things, Ethereum still has a long way to go. There are ever-increasing dApps running on top of the Ethereum protocol, and those decentralized applications also have increasing users adopting them.
Berlin and London update
Recently, the Berlin update was launched on the main net, which has steadily reduced gas fees for the past 2 weeks. And then, EIP-1559 will be packaged with the London hard fork this coming July. The London Hardfork aims to cut down on gas fees even more.
The EIP not only takes control of setting fees; it will burn or permanently “lose” a portion of each fee once it’s collected. The burning of those fees means some Ethereum will disappear completely, forever, decreasing the already scarce supply.
The combination of ETH burning, along with decreased GAS fees and increased demand and adoption could send Ethereum’s price to levels never thought possible by the end of this year. Owning 1 ETH in 3 years will be like owning 1 BTC today if Ethereum continues to solidify itself as a good investment (which is definitely the case now).