Ethereum bulls are back in full swing. As of the time of writing this, ETH’s price has just topped $210, pushing up by some 6% over the past 24 hours.
This strong move higher marks the end of a massive downtrend for Ethereum, in terms of its USD and Bitcoin pair. And analysts say this upward price action may not end any time soon.
Ethereum Price Surges Amid Fundamental Boom
For the first time in a blue moon, Ethereum is showing some brawn.
Over most of 2018, the cryptocurrency had a horrible showing, collapsing from an all-time high of $1,400 to double digits, representing a nearly 95% drawdown. Simultaneously, the ETH/BTC pair tumbled to pre-ICO bubble levels, hinting that there was little fundamental demand for the project.
But, over the past few weeks, this has started to change. After bottoming at $170 and around 0.016 BTC, Ethereum has started to rally for both of the pairs.
Traders are saying that this move will likely set the stage for further gains. Rand recently stated that if ETH consolidates above $200, which has acted as an important line of support over the past year, a move to $250-$300 is entirely possible.
$ETH is looking pretty strong here:
If consolidates over $200 we can get $250-$300 easily. pic.twitter.com/xfxaLzhWYK
— Crypto Rand (@crypto_rand) September 16, 2019
This move comes as Ethereum’s fundamentals have turned decidedly bullish.
Last week, Spanish banking giant Santander revealed on Thursday that it had settled a $20 million bond through ERC-20 tokens, which represented custodied cash, on the public iteration of the Ethereum blockchain.
This comes as the DeFi ecosystem has continued to gain steam, with DeFi Pulse stating that there the amount of ETH locked in Ethereum finance applications is reaching an all-time high. Simultaneously, the number of transactions made with Tether’s USDT stablecoin has continued to surge.
Also, BitPay has announced plans to integrate Ethereum into its leading payments processor, while a startup his announced plans to tokenize assets worth $100 million on the blockchain.
All this has amalgamated in dramatically increased usage of the Ethereum blockchain.
Bitcoin Dominance to Fall; Altcoins to Surge
Ethereum’s price action isn’t an isolated trend. Altcoins across the board have all showed strength over recent days, managing to outpace the market leader for the first time in about forever.
Just look to the chart from Coin360 below, which shows that leading altcoins are experiencing daily gains that are reminiscent of 2017’s bull rally.
This may continue, however. Crypto Thies, a prominent analyst, recently noted that his proprietary indicator for Bitcoin’s dominance chart recently printed a sell signal, suggesting a “potential change in trend” from a BTC-centric market to one that is led by crypto assets.
– 1W Sell Signal from @MarketGodx, suggesting potential change in trend
– Higher Low on #TOTAL2 (AltCap)
— Parabolic Thies ♔ (@KingThies) September 17, 2019
Featured Image from Shutterstock