Michael Van de Poppe: ETH could rise by almost 40% .
According to analyst Michael Van de Poppe, ETH could rise by almost 40% in the upcoming trading sessions.
An Amsterdam market analyst Michael Van de Poppe predicts that the ETH / BTC exchange rate will soon rise from the current range of 0.05-0.06 sat to 0.07 sat. The specialist based his bullish analogy on the support level of the 0.063 sat. The low was instrumental in maintaining the bullish bias of ETH / BTC during the infamous crypto market crash in mid-May 2021. It also served as solid support during the pair’s uptrend at the start of the May 2020 trading session.
“Ethereum continues to fight against bitcoin,” said Van de Poppe.
The bullish trend emerged when ETH / BTC bounced from its June 27 low of Sat 0.0552, up 21.28%. This confirmed that more and more traders are choosing to sell their bitcoin holdings in order to look for opportunities in the Ethereum market in recent days. Since the beginning of the year, the second largest cryptocurrency has already grown by more than 160%, compared to Bitcoin.
The sentiment appeared in connection with the transition of Ethereum to PoS. The project launched the first phase called Phase 0 or Beacon Chain in December 2020. He introduced the so-called sharded network architecture to the Ethereum blockchain. Sharding is a scaling technique that segments the Ethereum network into different groups. It then assigns nodes to each shard. These nodes must monitor and validate their respective chunks, thus eliminating the need to validate every transaction by every node, which is relevant to the current PoW consensus.
The next stage, which brings Ethereum closer to PoS, is EIP-1559, also known as the London hard fork. The upgrade proposes replacing the Ethereum first price auction fee model with a base network fee, which can be modified to match the demand of the network. He hopes to solve the problem of higher gas and transaction fees on the blockchain. It also aims to make ETH a deflationary token by burning the underlying NIC.
Traders see tremendous growth potential in the Ethereum market. The bullish formula is simple: offering Ether in circulation against rising demand will make it more valuable than it currently is. And as a result, the cryptocurrency is growing. Additionally, South Korea-based CryptoQuant has reported growing interest among Ether traders, taking the example of their declining ETH reserves across all cryptocurrency exchanges.
The amount of ETH held in all of the exchange’s wallets hit a 2.5-year low on Monday. The drop in ether on exchanges is clearly a positive indicator that supports investor confidence in the future of the blockchain, explained Yuri Mazur, head of data analysis at CEX.IO Broker. The CEO added that investors are using alternative means to secure their ETH assets during price corrections rather than dumping them straight for cash. He cited ETH-based investments in the decentralized financial sector as a prime example.