The investors of Ethereum rejoice and celebrate as the silver cryptocurrency registers a new ATH of $3044 in the middle of Q2, 2021. The journey to this top position has been filled with ups and downs. The first notable ATH for Ethereum was recorded in 2020. ETH started last year with an impressive price location of $760. However, this pace was slowed down, and ETH dropped as low as $90 in March of the same year.
The COVID-19 economic crash advocated this decline. By the end of the year, ETH was reinstated and managed to enter the New Year 2021 at $2000. After adhering to the support position of $2K, Ethereum has finally started to gain momentum and hit a new ATH of $3000 at present. The silver cryptocurrency has witnessed a year-to-date (YTD) growth of 300%.
What are the Contributing Factors Behind this Price Rally?
The news of ETH hitting $3000 has spread like wildfire in the crypto community. The silver cryptocurrency is boasting above giants like Apple Inc., PayPal, Toyota Motor Company, Coca-Cola Corp., Netflix, and others with a market cap of $352 billion. Analysts are ascribing this ATH with the EIP digital bonds sales on the Ethereum network. The likes of Goldman Sachs, Banco Santander, Societe Generale, and other major players have bought about $121 million worth of digital bonds from Europe Investment Bank (EIP).
It is expected that Ethereum would integrate the EIP-1559 upgrade on the network that would burn billions of coins in circulation. Many analysts are claiming that this upgrade would not only increase the value of the blockchain in the future, but its suggestion might already start to bear fruit. Many more important upgrades have lined up for the year to further help the digital coin’s appreciation.
Ryan Watkins from Messari says that Ethereum has already overtaken Bitcoin in terms of nodes count, transaction fees, and total transactions count. It is the only supposition that the Ethereum would ready to be enthroned by the new emperor of the crypto-verse. However, veteran investor Kevin O’Leary thinks that such a feat is next to impossible.
One of the highly anticipated and talk-about “merge event” of ETH 2.0, and ETH classic upgrade is set to take place sometime towards the end of the ongoing year 2021. It also registered a record growth of 0.05 in 3 years for the ETH/BTC trading pair. Meanwhile, Binance that came very close to ETH a few days ago, was left behind by its new NFT and DeFi craze.