Why is the price of Ethereum rising (Why is the Ethereum price increasing so much)?

08/15/2023 00:12 • AI & Tech Insights • 72 views

Why is the price of Ethereum rising? According to CoinMarketCap data, why is the price of Ethereum rising?

An analysis of the price trend of Ethereum:

1. From the daily chart, it has already broken through the resistance level of the Bollinger Bands and the 30-day moving average. If it does not fall below the middle track before the close today, it may confirm an upward trend around May next year.

2. Based on the KDJ indicator, Ethereum has a demand for a retracement. 3. In recent times, the price of Bitcoin has continued to rise, and there have been multiple touches to the support level. However, this wave of decline has not affected the confidence of the bulls or the entry of the bears.

3. Market volatility has intensified in the short term, and investors should pay attention to risks and control their own positions.

Why is the Ethereum price increasing so much?

From January to now, Ethereum has risen by nearly 20%. At around 10:30 am today, Bitcoin once again surged and broke through the $12,000 mark, with a 15% increase.

So why is the price of Ethereum so high recently? Because of the continuous rise since the beginning of the year, the price of Ethereum has experienced a sharp decline. But this is not bad news. In the past few months, both Bitcoin and Ether have performed well. Although the price of Bitcoin is currently in a recent low state, it has shown a strong rebound in the short term.

In fact, investors have consulted this question in December last year, believing that it is not surprising that Bitcoin may continue to rise or fall below $10,000 in the future. However, as the market gradually turns bullish, some investors have expressed their optimism about Ethereum. On last Friday (October 22), some people questioned, “Will Ethereum decline again?” Different opinions have been put forward on this.

But when we see this situation, there are actually many factors that have led to the skyrocketing of Ethereum this time: first, the soaring prices of DeFi project tokens and the development and implementation of technologies such as ETH2.0. The second is that the attributes of Ether itself are becoming increasingly prominent, so it also has its own development space. If it can make significant progress in this field, Ether will become the focus of attention for the next wave of capital.

The third is that the overall heat of the entire cryptocurrency market has been rising recently, and the most important point is the popularity of DeFi projects. DeFi is a relatively new concept. Earlier, it was a well-known new term, such as Compound and MakerDAO. But the heat of DeFi is still rising, mainly because the rapid development of its smart contract platform and the decentralized finance application layer has made many ordinary users more confident in investing in it. And these users are not only focusing on Dex but also conducting transactions in the DeFi field.

Finally, it is worth noting that due to the wide variety of products in the Dex field and the large number of users involved, it indicates that the application scenarios of DeFi are very extensive. In addition, the ecosystem of DeFi is gradually improving, which means that the Ethereum network will usher in a better development stage, thereby promoting the prosperity of the DeFi ecosystem.

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Why is the price of Ethereum rising (Why is the Ethereum price increasing so much)?

Why is the Ethereum price increasing so much?

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