Ethereum (ETHUSD) closes the month above record all-time high of $2,800+
The price of ETH is surging again this May 1st; reaching above the $2,860 mark for the first time, according to TradingView charts. Ethereum gained over 190% since the start of 2021 and is 1,200% higher than at the same date last year. Ethereum is ranked at a solid 2nd in terms of total crypto market capitalization. Compared to Bitcoin, Ethereum continues to be undervalued. But it’s slowly catching up on the BTC/ETH charts.
The introduction of ETH 2.0 has begun with the launch of the Berlin update recently. All those upcoming changes not only intend to scale the network and alleviate congestion. It’s also introducing technical changes (EIP-1559) that realign the economic incentives of the Ethereum network.
Instead of miners validating the transactions with GPUs and ASICs, it will be up to ETH holders to secure the network
This will be made possible via a proof-of-stake mechanism. The whole market is still very bullish, investor confidence in US stocks and cryptocurrencies is still very high. While Bitcoin could be considered a store of value like gold. Meanwhile, ETH is more like oil; it fuels a protocol on top of which decentralized applications, financial instruments, and much much more can be built. The possibilities, in my opinion, are limitless.
ETH is in an uptrend but also in a channel
I’m expecting ETH to break up for a new high, then retest this resistance then continue to go higher. A pullback can be expected, but I think this will depend on the market in general. For now, we remain very bullish. For a while, ETH couldn’t make new highs because of the fear of ever-increasing gas fees. But fees had dropped a lot since the launch of the Berlin update. And with further updates coming in the summer, the bullish momentum on Ethereum should remain high.
If you want a low-risk strategy to capitalize on Ethereum, here’s my suggestion.
Aim for longer-term gains. Learn about dollar-cost averaging and other strategies. Buy a little, whenever you have some money to spare, that you can afford to lose, every week or every few weeks. And then hold it.
And remember, NOT YOUR KEYS, NOT YOUR COINS!