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Reports of its death have been greatly exaggerated. This has happened to Ethereum several times. Now the Ethereum price has more than doubled this year. Due to the current price rally, the ETH coin is heading straight for the CHF 300 mark. A market cap of almost CHF 30 billion implies how in demand the best-known altcoin is at the moment. But there are other reasons why 2020 could be the year of Ethereum.
to the current Ethereum price
BTC Dominance Falls
The Bitcoin Dominance Index is an important indicator for classifying the current market conditions. 61.4% of the total market capitalization is currently in BTC investments, while the alternative assets share a market share of 38.6%. At first glance, this looks like a clear division of roles. However, it should be noted that a BTC Dominance Index of 61.4% also marks the low for the year. Investors are investing more money in altcoins again. It is still a long way from an “Altcoin Season”, but the cryptospace has often experienced an abrupt redistribution. This was also the case in January 2018, when the BTC Dominance Index fell from approx. 60% to approx. 30% within a few days. As a result, dozens of altcoins celebrated a new all-time high and double-digit price fluctuations were the order of the day.
Repetition of 2018?
Should there be another “Altcoin Season” this year, Ethereum would be the first point of contact for investors. The smart contract platform offers many use cases and, after Bitcoin, is the best-known cryptocurrency worldwide. In January 2018, the ETH price shot to an all-time high of CHF 1405.22 and the “1 ETH = 1 Lamborghini” calls fueled the hype. Due to the increasing reporting of the mainstream media, various experts are already seeing a measurable FOMO effect. “FOMO” stands for “Fear of missing out” and refers to the fear of investors that they could miss the next bull run. The search queries for Bitcoin and Co. are also at a record level, the momentum is bullish.
Ethereum 2.0
In addition to the Bitcoin Halving Event and the Libra launch, the release of Ethereum 2.0 is considered an absolute highlight in the crypto year 2020. With several innovations, such as the long-awaited switch from Proof of Work to Proof of Stake, the team around Vitalik Buertin wants to further advance the overall efficiency of the ETH blockchain. But when will Ethereum 2.0 be released? According to the latest statements, a launch by the end of the second quarter is realistic. Buterin presented the Serenity concept back in 2018 and thus created high expectations among investors. Should the flawless end result meet a bull market, the Ethereum price could record extreme price jumps.
DeFi in Focus
The decentralized financial market (DeFi) is growing rapidly. The ETH-based ecosystem now stores funds worth over USD 1 billion. This development is particularly beneficial to ETH and ETH-based dApps. DeFi is a lucrative field for investors. The Stable Coin DAI curbs volatility, while the dApps market offers new opportunities. More and more investors and users are seeing the advantages of the decentralized platform and this has a positive effect on the ETH price.
Ethereum Price in Detail
At the time of the article, Ethereum is at a price of CHF 275.32. After crossing the 100-day line, there was only one direction for the chart. In the past 30 days, this means a price increase of a whopping 70%. The next major resistance areas are around CHF 276 and CHF 288. Many indicators currently point to an attack on the CHF 300 mark. However, one should always take into account the price development of Bitcoin.
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