What Does “Ethereum High” Mean (Ethereum Peak)

08/15/2023 02:50 • Metaverse & Beyond • 53 views

What does “Ethereum high” mean? What does it mean for Ethereum to be at a high?

In the field of cryptocurrency trading, “high” refers to the fact that initially no one can predict the bottom of Bitcoin. Therefore, both the terms “high” and “low” are inaccurate and mistakenly assume that the price of Bitcoin should be $10,000. 1. The height of a price (such as its position on a chart) refers to the situation where miners have to sell newly mined coins to the market in order to obtain new coins. If an address sells a large amount of Bitcoin or invests in this account without making enough profit, a large amount of selling is needed.

2. The height of a price can be understood as “bullish” or “bearish,” meaning that if more people are willing to invest in Bitcoin and the price remains the same, the quantity of Bitcoin purchased will increase; and vice versa, when someone wants to purchase more Bitcoin, the same problem may arise: why spend so much money to do this job?

3. What does the height of a price mean? It means that when the assets of an address fall below a certain level, it will rise. But if the investor holds very little ETH, they will not be able to bear such a loss.

Ethereum Peak

Editor’s note: This article is from Odaily Planet Daily, authorized for reprinting.

Ethereum is the first cryptocurrency project to be activated when the block height reaches 114,000. Since its launch, it has been running continuously. The highest transaction volume on the Ethereum network is about 19,000 transactions, averaging over $100,000 per day (often referred to as a “historic high”) and millions of transfers. The price of Ether has also risen, recently exceeding $1,000.

However, the “historic high” still has a great deal of uncertainty — but Ethereum is still far from its record high. If Bitcoin maintains its current price, Ethereum will rise to a new high again. Top token holders of Ethereum can purchase ETH as a reward using their wallets or exchanges, or convert it into cash. For example, if a user wants to sell any BTC they own and receive ETH as a reward. It may take longer to achieve this goal.

However, there is nothing on the Ethereum blockchain to stop miners from continuing to provide funds to the network, as miners cannot exploit these resources to mine them. On the contrary, as people start accumulating new ETH and sell the ETH they own at a higher price, a strange situation arises: more and more miners are entering the field.

According to data from on-chain analysis company Glassnode, there are currently about 126,000 Ethereum addresses holding Ethereum worth over $1 million (worth nearly $3 million). In addition, more than 22,000 ETH has been generated in the past two weeks. At the time of writing this article, this accounts for only 0.3% of the circulating supply. Although this number has increased slightly compared to before, it is a relatively small growth period compared to the bull market in 2017. The average daily trading volume of Ether has been steadily declining since 2019. After May 2020, the trading volume of the ETH/USDT trading pair has been stable at around $3 billion. However, this trend seems to be gradually weakening in the coming months.

According to data from BitInfoCharts.com, as of early September, Ethereum has surged to over 320,000, compared to only reaching $65,000 the day before. Since its launch in mid-July of last year, the trading volume of ETH-WrappedToken (WT) has more than doubled.

It is worth noting that because most DeFi protocols adopt similar products and protocols to attract investors, many investors believe that this is due to the rise of DeFi leading to more investment opportunities. For example, when MakerDAO created the ETH 2.0 solution by pledging $250 million worth of DAI, the annual yield of ETH was about 15%. During Ethereum’s peak period, this ratio reached an astonishing 45%! At the time of writing this report, the daily yield of Ether is 4%.

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What Does “Ethereum High” Mean (Ethereum Peak)

Ethereum Peak

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