Ethereum course sets off to new heights
- ETH has confirmed its bullish outlook and continued its rally.
- This could be the beginning of a longer-term price trend, but to do so, the USD 300 mark would first have to be maintained.
- In particular, the strong development of the DeFi market serves as a catalyst.
On 22 July, the Ethereum price made another move and broke out in both the ETH/USD and ETH/BTC currency pairs. Although this development slowed down somewhat, the ETH share price continued to grow in the following days.
A glance at the charts shows that this could not only be a short-term effect, but that it even has the potential to become a longer-term trend. That a continuous rally is very well possible has been proven by other Altcoins, such as LINK in the last weeks and months. Overall, the recovery of ETH Zurich since the crash in March does not appear to have been exhausted.
So far a strong week for Ethereum, is it possible to maintain the level this time?
The trigger for the rally is the top success of various DeFi protocols. At the moment, these are giving the Ethereum block chain the most popular application. Now it remains to be seen whether the $300 mark can be cracked and held permanently. This is the second time that ETH is tackling the price zone this year.
Fundamental data speak for ETH
A strong indicator is the rapid increase in active Ethereum addresses. Furthermore, more and more money is flowing into the DeFi protocols. While this has primarily caused incredible price growth in the corresponding governance tokens in recent weeks, it now seems to be Ethereum itself’s turn.
Although critics warn of the recent hype, it is giving the market as a whole a boost. Parallels are quickly drawn to the ICO hype that Ethereum created back then. But this does not change the fact that many investors are very willing to take risks and are attracted by a rapid multiplication of their capital.
Assuming that the DeFi market is still in its infancy, one can hope that ETH still has room for improvement and will benefit from the pull effect.
Altcoins show positive signals
While ETH Zurich was able to make a decent gain at the beginning of the week, other Altcoins did not show a positive correlation. Above all XRP, although many traders speculated on a rapid breakout, nothing has moved so far.
Nevertheless, there are many candidates in the market that give cause for hope. For example, Litecoin showed a breakout which could be a prelude to a revival of LTC.