Why You Should Not Underestimate Ethereum
The rate of growth of Ethereum can be seen in an increased percentage of unique addresses created daily. The network is showing mid-2019 levels, but the cost of ETH is down by approximately two times since then.
In June 2019, the cost of the Ethereum was fluctuating at around $300. Still, its network rise was varying from 100 to 150 thousand of unique addresses per day. Half a year later, ETH is at $140 per coin, and the network is continuing growth firmly at just over 100 thousand addresses every day. What do we see? Very obviously, Ethereum is undervalued.
It is complicated to define that the current downtrend of Ethereum and the cryptocurrency market will be lessened barely because of the network’s growth.
Network enlargement, user activity increase, and a growing in developer practice are three basal characteristics that influence from the medium to the long-term rise trend of a blockchain network.
In the short-term perspective, leading cryptocurrencies, including Bitcoin, Ethereum, and others, are more vulnerable to tendencies in the exchange and margin trading market than basal characteristics.
At the time of a bear market, most main cryptos usually tend to follow the cost of Bitcoin. But, despite the trend of cryptocurrencies to string along with the upside movement of Bitcoin amidst a downtrend, leading cryptocurrencies hardly moved in the last three days when the Bitcoin cost grew.
But, when Bitcoin descended in the past 24 hours from $8,400 to sub-$8,000, Ethereum and other cryptos fell by 3-5%.
Where is Ethereum headed to in the short-term perspective?
In the nearest months, technical analysts expect both Bitcoin and other cryptos to maintain their positions in the diapason from $6,000 to $8,400.
$8,400 was a hard opposition degree for Bitcoin, and as soon as the dominant cryptocurrency tested it, it fell quickly to approximately $8,000.
If BTC marked at $8,400, which many analysts suppose following its overnight 5% fall, Ethereum most likely has more opportunities for a decline in the short-term perspective.
Technical indicators consider that uptrend is still intact for Ethereum in spite of the bearish outlook on the crypto market. That could minimize the downside change of ETH in the near time.