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Ethereum Price Drops 20% on Monday but Traders Are Bullish with Eth 2.0

UTC by Steve Muchoki · 3 min read
Ethereum Price Drops 20% on Monday but Traders Are Bullish with Eth 2.0
Photo: Shutterstock

As the asset retested its all-time high, Ethereum traders and investors are eagerly awaiting the launch of CME’s Eth futures scheduled in four weeks. 

Ethereum price tumbled more than 20% on Monday, having moved from $1,261.62 to lows of $924.92. However, the asset stabilized later in the day to close the day trading at $1,090.15, thus a change of approximately 13.59% during the day. The high liquidation saw Ethereum market price dramatically increase in its volatility. Notably, increased blockchain activity was accompanied by high transaction fees. Most Ethereum traders are optimistically bullish with the asset bolstered by the awaited Eth 2.0 full launch.

Already the phase 0 of Eth 2.0, which encompasses the Beacon Chain, was launched December 01, 2020. The Eth 2.0 launch has been received with a huge warm welcome by the Ethereum community. Whereby the developers have noted that interest in Ethereum staking is so high that most are left to wait in line.

“I was surprised that the inflows have continued to be so large and think there’s a chance that the queue to enter Eth2 does not run dry for all of 2021, meaning there is always a wait for a validator to join the network because so many are trying to join simultaneously,” noted Viktor Bunin, the protocol specialist at blockchain infrastructure provider Bison Trails.

Ethereum Market Price

Market data provided by CoinGecko indicates Ethereum is approximately 22.8% from its ATH around $1,448.18. The asset was trading around $1,123.54, having added approximately 1.8% during the past 24-hours. Interestingly, Ethereum has rallied almost sevenfold in the past twelve months. Besides, Ethereum has added approximately 96.4%, 52.3%, and 8.8% in the past 30 days, two weeks, and seven days according to CoinGecko.

Being the second most valuable cryptocurrency in the world, Ethereum has received huge backing from both retail and institutional investors. As the asset retests its all-time high, Ethereum traders and investors are eagerly awaiting the launch of CME’s Eth futures scheduled in four weeks.

Ethereum’s bright future is well backed by a clear roadmap for scalability and low transaction fees. Ethereum ecosystem is facing fierce competition from the Binance smart chain that offers scalable, interoperable and cheaper services. However, Ethereum remains the leader in the smart contract sector, whereby projects including decentralized finance have thrived.

The 2017 Ethereum bull rally was largely attributed to the crypto bubble. However, the ongoing bull rally has been attributed to a real utility case fueled by proliferation of institutional investors.

Speaking in an interview, Ethereum co-founder Vitalik Buterin implied that he is optimistic a lot will be achieved through the next twelve months.

“We need to be working very hard on making sure that there’s more space for transactions so that we don’t have this dynamic where everyone is bidding for a very small amount of space so that only very few transactions can get in,” he explained.

Read more news from the crypto industry here.

Altcoin News, Blockchain News, Cryptocurrency news, Ethereum News, News
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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