Ethereum Tests $2,300 Range As Market Adds $70 Billion

Ethereum Tests $2,300 Range As Market Adds $70 Billion

Ethereum has been testing the $2,300 price resistance range during the recent market recovery posed by the market. Total crypto market capitalization has seen gains of 2% over the past 24 hours. This translates to about $70 billion in market cap gains over the last day. This new recovery comes in light of the news of bitcoin whales accumulating over 60,000 bitcoins in a single day. The biggest accumulation so far of 2021 in 24 hours.

The bullish news pushed the price of bitcoin over the $35,000 range and Ethereum broke $2,300 in that same time period. ETH had consistently traded under $2,300 over the past week. With bulls trying to push the coin over the hurdle but with no success. But in a small rally that followed the price of bitcoin, the coin had finally broken this important point.

Related Reading | Ethereum Upgrades Could Jumpstart $40 Billion Staking Industry, JP Morgan

Although the price only stayed above $2,300 for a small amount of time, this is major news to Ethereum bulls.

Bullish News And Sentiment

Last week, news broke that number of active Ethereum addresses had risen higher than active bitcoin addresses. This comes after reports that bitcoin active addresses had hit a new low. This was after the number had hit a new record high at the height of the bull market.

Ethereum active addresses are reportedly over 700,000. While bitcoin active wallet addresses remain just north of 50,000. ETH market cap currently sits at approximately $264 billion.

Although Ethereum still follows bitcoin in market cap and popularity, the coin is really gaining ground as the digital asset to be invested in. With so many improvements in the network, speculations abound that Ethereum will soon overtake Bitcoin as the digital asset of choice in the coming years.

Ethereum briefly breaks $2,300 before crashing back down | Source: ETHUSD on TradingView.com

As bullish sentiment increases, so will the number of new investors coming into Ethereum. The recent price spike has shown that market interest in the coin has not waned. The slow buildup of the coin might indicate a much bigger bull run just on the horizon as the coin takes time to recover.

Ethereum has been down over 50% of its all-time high. Going below the $2,000 range. Before rebounding and making a run for above the $2,000 price level.

Furthermore, news like JP Morgan’s analysts reports that Ethereum staking could become a $40 billion dollar industry by 2025 have investors being bullish on the recent upgrades. With over six million Ethereum currently staked ahead of ETH 2.0. Accounting for 5% of the entire circulating supply of Ethereum currently being staked.

Ethereum Making A Comeback

Each bull market sees a rise in the popularity of digital assets. This recent bull market has seen ETH’s popularity skyrocket. Countries like Isreal are testing their CBDC Shekel on the Ethereum network.

The move to ETH 2.0 prompts more investors to pick Ethereum over bitcoin as the leading blockchain due to the energy efficiency of the former over the latter. The move will also provide the network with more security and scalability. Hence drawing in investors whose sole worry about being in the crypto market is about security.

Related Reading | Scaramucci’s Skybridge Capital Launches Ethereum Fund

The rise of DeFi has seen more investors in ETH. Giving investors a way to earn money while owning cryptocurrencies.

Ethereum investments have grown as investors buy the coins to get access to 32 coins that will enable them to run their own nodes in the proof of stake move coming in 2022.

As Ethereum continually tests the $2,300 price resistance range, bulls continue to work to push the coin what could be the start of another bull run.

Featured image from Libertex, chart from TradingView.com