Ethereum rises above $ 3,000 – investors celebrate “London upgrade”
Ether, the second most important crypto currency by market size, is quoted on Monday and thus immediately above the psychological mark of $ 3,000 again at the beginning of the week. Within a week, the currency with the abbreviation ETH climbs by almost 20 percent northwards.
Last but not least, the so-called “London upgrade” is likely to have further accelerated the upward momentum. Bitcoin’s price recovery may also play a not insignificant role.
With purchases over the weekend, investors honored the latest upgrade called “EIP-1559” and meanwhile drove the Ethereum price to its highest level since the middle. Right up to the top, the price was recently quoted at around $ 3,200 per unit.
The underlying Ethereum blockchain has improved in terms of speed, among other things. The fee structure was also redone. If transactions are sent via the blockchain, a so-called “gas fee” is usually required, which is paid to the miners. This is replaced by a kind of “basic fee” so that it can be better calculated in advance.
The amount of coins in circulation can also be reduced over time, which could lead to a deflationary character, similar to that in the bitcoin ecosystem. The miners therefore no longer receive a basic fee. Rather, it will be withdrawn from the market or “burned”, which could indicate a future price increase if demand remains high.
Do you already know the top 10 cryptocurrencies to trade in 2021?
The technical constellation is brightening noticeably – but regulatory concerns remain smoldering
With the conquest of the 3,000 mark, the technical chart constellation is also likely to have brightened up further. Follow-up purchases could now continue from a short-term perspective.
Should the Bitcoin price win the battle for the technical resistance level of 45,000 dollars or against the 200-day average, the way would be paved to around 50,000 dollars. This development should also possibly favor the chances of further gains for ETH.
That said, investors should still keep an eye on simmering regulatory concerns. Last week, the head of the US Securities Exchange Commission (SEC) described the regulation of cryptocurrencies as a “wild west”. This had caused irritation, as Gary Gensler is generally considered to be crypto-friendly.
Should the mark of 3,200 dollars be mastered, the way for the Ethereum course up to 3,500 and 3,600 dollars is well paved. From a short-term perspective, further upward advances remain conceivable.
How to trade cryptocurrencies with IG yourself
Do you want to trade cryptocurrencies yourself? Open a live or demo account with IG and buy (long) or sell (short) Bitcoin using derivatives such as CFDs in a few simple steps:
- Create an IG trading account or log into your existing account.
- Enter “Bitcoin” in the search bar and select it.
- Choose your position size.
- Click Buy or Sell Order Ticket.
- Confirm the order.