Probable Reasons for ETH surge
Ethereum price surpassing $400 is not the first time in the recent past, however, it failed to find any support over the mark. Few analysts predict an uptrend for the digital asset, but soaring beyond $400 is still misty. Currently, ETH is trading at $334.70 with a loss of 0.05 percent.
ETH Price to Soar With BTC
The second most loved cryptocurrency is often seen following the no. 1 crypto Bitcoin as observed in the recent price chart. Also during the recent DeFi swell, ETH surged with soaring prices nearing $480. At the same time, Bitcoin also surged above $12000 and for sometime slipped below.
Therefore, BTC price plays a vital role in the ETC surge. As bitcoin is expected to jump very high in the coming days, ETH might also follow BTC.
However, one of the analysts Vince Prince speculates a bearish downtrend for the digital asset. As per Prince, Ethreum price could possibly decline below the range of $300.
The Population of Ethereum Whales Increases
The dip in the price has invited new whales in the market. According to the crypto insight provider, Santiment, as good as 68 new ETH Whales have joined the market. These whales hold 1,000 to 10,000 ETH and have joined after 04 Sep 2020.
The prime focus here is, the large chunk of investors or traders jumped into the pool when ETH price has dipped more than 30 percent. Hence, a bullish trend can be expected in the coming days.
Ethereum Outperforms Bitcoin in Several Other Ways
Regardless of the price and the market capitalization, Ethereum has managed to flip Bitcoin in these areas.
It’s evident that the transaction over the Ethereum network is more fast and secure compared to that of bitcoin. And therefore faster network blocks process more transactions that places Ethereum a step forward than Bitcoin
The higher transaction fees or Gas fees particularly has been outspread over the crypto community in recent times. In fact, the ETH gas fees had superseded the BTC transaction fees in recent days. However, the high fees of ETH than BTC cannot be considered as a milestone, rather a matter of concern.
The node count is considered as a crucial statistic as more nodes signify more decentralization with high security. Currently, there are 9,025 Ethereum nodes compared to 7,628 Bitcoin network nodes. However, currently, it might not seem to be troublesome but could play a vital role after the release of ETH 2.0.
Summarizing the whole story, Ethereum is struggling to maintain its support level above $330. However, the analysts predict a bearish trend for ETH with price dipping till $250. Conversely, a short term relief which could pump the price nearing $400 could play a vital role before the plunge.