Ethereum Leading the Market, Breaks Out of Yet Another Bull Flag
The price of Ether is back to enjoying the gains as the digital asset spikes by 16% in the past two days, pushing it to two year high.
These gains helped ETH move past $400 to climb nearly $430, putting the 2020 gains at 222%. The digital asset has recovered more than 200% since its March lows but is still down 73% from its all-time high of $1,570.
The last time Ether was trading around these levels was in late July 2018 when it was making its way down to the bottom, from January 2018 highs.
While bitcoin only moved about 2% in the past 24 hours, ETH is still recording 8.60% gains seeing $2.1 billion in ‘real’ trading volume, which is less than $200 million traded in bitcoin, as per Messari.
Ethereum is leading the market while bitcoin “continues to consolidate within a similar structure,” that Ethereum has broken out of – bull flag.
Since late April, Ether has broken out of three major bull flags and is now breaking out of another one, states analyst Rekt Capital.
— Rekt Capital (@rektcapital) August 14, 2020
As we reported, ETHUSD longs are also surging, expecting the cryptocurrency to continue to move up.
Back to Ether
While ETH went up, some of the DeFi tokens have taken a step back. The likes of Maker, Elrond Network, Balancer, Cred, HOT, Aave, Bancor, Ampleforth, TOMO, and YFI are currently in the red.
DeFi tokens have been hot throughout 2020 spectacular recording gains, and these losses might just be temporary as many other cryptos are continuing their uptrend.
— Josh Olszewicz (@CarpeNoctom) August 13, 2020
Ethereum’s gains have come despite the address activity hitting two-months low that has traders “rejoicing on sky-high social volume levels as well,” noted Santiment.
The low address activity has been because of the soaring fees on the network, which has yet again DeFi projects as the primary cause. “As users compete for limited space in the DeFi ecosystem, arbitrage bots have become unwelcome gas guzzlers, pushing gas prices to all-time highs,” notes Glassnode.
For the past two days, Ether fees have been hitting new records, just yesterday, more than 17,500 ETH worth $6.8 million was spent on fees.
According to analyst Mati Greenspan, record-high fees, while several daily on-chain transactions are reaching a level not seen since January 2018, are “bullish fundamentals as the network is now retaining more value.”
Amidst this, the good news for Ethereum came in the form of JP Morgan considering merging its blockchain division with blockchain company ConsenSys, which works and invests primarily within the Ethereum ecosystem, with a $20 million debt financing round. Through ConsenSys, JPM will gain exposure to a host of Ethereum-based projects as well.