In recent time, we’ve seen an increased interest in one particular digital currency: Ethereum. Despite some turbulence, Ethereum, better known as Ether, is showing serious potential for growth. In light of recent developments and technical indicators, the price of Ether is looking ready to rally higher. Let’s delve into the three key reasons why this altcoin might just be on the brink of an ascent.
Strong support at $1,750
One major indicator of Ether’s potential upswing is its significant support at the $1,750 mark. This support has held steadfast, despite pressure from sellers. A strong support level such as this tells us that buyers are willing to step in and purchase Ether at this price point, combating any downward trends. This careful balance between buying and selling activity reveals a relative stability that could ultimately create a springboard effect, propelling Ether’s price higher.
Rise in total value locked in Decentralized Finance
Another reason for optimism stems from the world of Decentralized Finance, or DeFi for short. The total value locked in DeFi, a vast majority of which is built on the Ethereum network, has seen a significant surge. To put this into perspective, the total value locked in DeFi has just recently exceeded $40 billion, a substantial rise from $15 billion at the end of 2020. This increase indicates a growing appetite for Ethereum-based applications, indirectly boosting confidence in Ether’s future progress.
Growth potential of DeFi
But why does an increase in the total value locked in DeFi matter? DeFi is turning out to be a game-changer in the financial industry. Leveraging blockchain technology to eliminate intermediaries, DeFi applications offer an alternative to the traditional financial ecosystem. For Ethereum, increased usage of its blockchain for DeFi adds value to its network, contributing to the upward pressure on Ether’s price.
Upcoming network upgrading
Also adding to the positive outlook for Ether is the long-awaited Ethereum 2.0 upgrade. This upgrade is aimed at improving the scalability and security of the Ethereum network. Upon implementation, this could potentially catapult Ether’s price, as higher scalability would better accommodate a surge in transaction volume. This, combined with enhanced security, would further increase user confidence in the Ethereum network, thus bolstering the value of Ether.
These are undoubtedly exciting times for Ethereum. With strong support at $1,750, the rise in total value locked in DeFi, and the upcoming network upgrade, Ether looks ready to rally higher. However, as much as the indicators are pointing towards an uptrend, it is crucial to remember that the crypto world is inherently unpredictable. Tokens can skyrocket or plummet on the slightest of news, implying one has to tread cautiously. Always bear in mind that risk management and due diligence are the cornerstones of successful cryptocurrency investment.
And above all, approach the crypto world with a healthy dose of critical thinking. While the indicators are positive for Ethereum now, the scenario could change quickly. So, stay informed, stay smart, and keep your crypto journey safe and profitable. Good luck!
Jake Morrison is an insightful cryptocurrency journalist and analyst, renowned for his deep understanding of the volatile and fascinating world of digital currencies. At 30 years old, Jake combines a background in Computer Science, with a degree from a reputable tech college, and a passion for decentralized finance, making him a prominent figure in the crypto journalism landscape.
Starting his career as a software developer with a focus on blockchain technologies, Jake quickly realized that his true calling lay in educating others about the potential and pitfalls of cryptocurrencies. Transitioning to journalism, he now serves as a leading voice for a major online financial news platform, specializing in the crypto category.
Jake’s articles are a blend of technical analysis, market predictions, and feature stories on the latest in blockchain innovation. He has a talent for breaking down complex crypto concepts into understandable terms, making his writing accessible to both seasoned traders and crypto novices alike. His coverage spans a wide range, from Bitcoin and Ethereum to lesser-known altcoins, as well as the evolving regulatory landscape surrounding digital currencies.
What sets Jake apart is his critical approach to the hype that often surrounds the crypto space. He emphasizes the importance of due diligence and risk management, providing his readers with the tools they need to navigate the market intelligently. His investigative pieces on crypto scams and security breaches have been instrumental in raising awareness about the importance of security in digital asset investments.
Beyond his writing, Jake is an active participant in crypto conferences and online forums, where he shares his expertise and engages with the community. He also hosts a popular podcast that delves into the latest crypto trends, featuring interviews with leading figures in the blockchain space.
Jake’s commitment to transparency and education in the cryptocurrency world has made him a trusted source of information and analysis. Through his work, he aims to foster a more informed and cautious approach to cryptocurrency investment, contributing to the maturity of the space.
