- Ethereum (ETH) recorded an impressive 59% increase over the year, with an additional boost anticipated due to upcoming Ethereum Improvement Proposal (EIP).
- Despite Bitcoin’s impressive gains, Ethereum might emerge as a strong contender due to upcoming blockchain updates and reduced availability on crypto exchanges.
Over the past year, Ethereum (ETH) has showcased impressive growth, surging by a commendable 59% according to CoinGecko’s latest data. Bitcoin, its formidable rival, also experienced substantial growth, recording an 84% year-to-date increase.
The digital currency market has been buzzing lately, primarily driven by a bounce-back in cryptocurrency prices following BlackRock’s application for a Bitcoin spot ETF. Ethereum, in particular, has been on a stable upward trend since June 15. Its bullish pennant saw three consecutive days of profits, peaking at $1,901 on June 21 before the bullish market took a respite.
Currently, Ethereum’s price trajectory hints towards another bullish pennant, suggesting a phase of ongoing consolidation. Over the last five days, the price of Ethereum has swung between $1,861 and $1,936. Given the pattern, it’s plausible to expect Ethereum to resolve this bullish pennant with a target beyond the $2,000 milestone.
On the downside, Ethereum has a solid support structure in place near the $1,855 range, backed by purchases made by 2.8 million addresses that bought 3.36 million ETH. As of the moment, ETH has slightly dipped in the last 24 hours, currently standing at $1,897.
According to data from CoinShares, digital asset investment products witnessed their most significant single weekly inflow since July 2022, totaling $199 million. This counteracted nearly half of the outflows from the previous consecutive weeks. Ethereum accounted for inflows of $7.8 million, which is modest compared to Bitcoin, suggesting a somewhat lower appetite for Ethereum at present.
However, several factors could catalyze Ethereum’s price in the coming days. Notably, HSBC, Hong Kong’s largest bank, now permits its clients to trade Bitcoin and Ethereum ETFs listed on the Hong Kong exchange. This makes HSBC the first bank to offer such a service, which might act as a stimulus for Ethereum’s price.
Ethereum Improvement Proposal (EIP) 4844, colloquially known as “proto-danksharding,” which aims to reduce costs for ETH Layer 2 solutions, is also slated for implementation in the Dencun upgrade. Scheduled to occur later in Q3 or early Q4 of 2023, this update could catalyze Ethereum’s economic activity on its network, potentially leading to greater value accumulation in the mid-term.
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