Although Ethereum has started an impressive 170% rally since the March lows, the cryptocurrency remains more than 80% below its all-time high of $ 1,430.
With such a strong withdrawal from its all-time highs, there were skeptics wondering if ETH would ever reach a new record high.
Fundamental signs, however, show that ETH is ready to embark on its next long-running run.
Related Reading: Wyckoff Textbook Analysis Shows Bitcoin Is About To See A Brutal Drop To $ 7,000
There are three main Ethereum Bull trends
Jimmy Ragosa of Consensus Labs recently identified three fundamental ‘waves’ that could put an end to ETH bears:
- Layer 2 scale solutions: There has recently been an influx of Layer 2 scale solutions that have migrated transaction capabilities to a second secure layer, reducing transaction speeds and costs while increasing transaction throughput. Analysts say this will increase demand for ETH as the cryptocurrency becomes easier to use.
- The implementation of ETH 2.0: The first phase of the Ethereum 2.0 upgrade will go live soon. It will introduce Proof of Stake into the token economy of ETH, lowering cryptocurrency inflation over time, analysis suggests. The introduction of strike is expected to result in an influx of demand from long-term holders who wish to deploy the cryptocurrency in exchange for interest on their deposit.
- Ethereum Improvement Protocol 1559: An Ethereum Improvement Protocol, 1559, has recently received a lot of steam in the cryptocurrency community. If implemented, it would burn ETH for every transaction sent, resulting in a possible deflation in Ethereum’s circulating offering. This could distort the dynamics of supply and demand in favor of price increases.
I can think of at least 5 extra waves.
Can you guess what they are? pic.twitter.com/QiDaR28SZm
– Jimmy Ragosa (@JimmyRagosa) June 3, 2020
Technicals also bullish
The technicals are also bullish.
Dan Tapiero – the CEO of DTAP Capital, a prominent golden bull and the head of an upcoming cryptocurrency fund – recently noted that ETH is ready to go higher:
Map of ETH on the verge of explosive upward movement. Are there any upcoming potential catalysts? Go through 300 projects to at least 500 over the next 6-12 months. Are there strong views? ‘
Map of Ethereum on the verge of explosive upward movement.
Are there any upcoming potential catalysts?
Go through 300 projects to a minimum of 500 over the next 6-12 months.
Are there strong views? pic.twitter.com/xLV9wt5CVD
– Dan Tapiero (@DTAPCAP) June 4, 2020
Ethereum climbs to $ 500, marking a 66 percent increase from $ 300 and doubling current prices.
Raoul Pal, the director of Real Vision and a former director of Goldman Sachs, explained that ETH is ready to break out against Bitcoin:
“It even looks like Ether will outperform Bitcoin at some point (no position yet). Remember: no tribal attacks on bitcoin vs ethereum. They are two different things and two different ecosystems. ‘
Related Read: Crypto Facts: $ 200 Million In Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish
Featured Image from Shutterstock Price tags: ethusd, ethbtc There Are Three Fundamental "Waves" That Could End Ethereum Bears in the Long Run