Ethereum (ETH) resurgence continues to gather pace after a rollercoaster 2018. The second largest cryptocurrency by trading volume has crossed the $300 barrier, after moving up by more than 300% since the start of the year.
In recent trading sessions, ETH has traded in unison with Bitcoin (BTC), which is also flying high after imploding in 2018. The broader cryptocurrency market turning bullish in 2019 comes as renewed investor interest grows with mainstream adoption.
For ETH, 2019 has turned out to be an inflection year after bottoming out from lows of $92 as of December. One of the riggers fueling ETH’s upward momentum has to be the high levels of liquidity associated with the cryptocurrency.
Ethereum continues to see the biggest inflows of funds from Tether (USDT) and Bitcoin, underscoring the love it continues to receive from cryptocurrency enthusiasts. From the BTC market, ETH has attracted more than $1 billion in inflows as $1.14 billion has come in from Tether market.
ETH Price Catalysts
Concerns that Ethereum is undervalued, relative to Bitcoin, is another development that is fuelling the cryptocurrency price. ETH is currently at the lower range of its cycle against BTC at 0.028 BTC compared to peak levels of 0.15 BTC.
BTC stagnating on another leg high after the recent spike to the $11,000 level could work in favor of ETH. While BTC has recouped a substantial amount of losses accrued over the past year, ETH is still a shadow of its record highs of $1,400. For that reason, any stagnation in BTC could result in a shift of attention to ETH.
ETH price could receive a significant boost on the arrival of the staking in 2020. Staking of 3–5 ETH could pose significant supply challenges for the ETH coin, something that could result in a price spike.
Ethereum price could also inch higher on the increase in the number of transactions carried out on the Ethereum network. Currently, more than 800,000 transactions are carried out on the Ethereum network, further ramping up ETH’s credibility and support.
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