Ethereum’s trends have been rising as the company reclaimed its mid-zone at $3,000. As the market cap of the second cryptocurrency, it is now the third-best performer among the top 10 cryptos.
TA: Ethereum Gains Traction, A Strengthening Case For More Gains| TA: Ethereum Gains Traction, A Strengthening Case For More Gains
Ethereum (ETH), trades at $3,000. It has a 7% profit and 19% profit over the past 24-hours. With a 39% profit and 26% respectively, Solana and Cardano (ADA), the rank has a superior performance.
A general trend upwards in the cryptocurrency market is due to relief from macro-economic factors. QCP Capital, a trading firm believes that the bullish price movement is due to positive reactions to U.S. Federal Reserve’s (FED), interest rate increases.
It began tightening its monetary policy. The FED hinted at more rate increases. Bitcoin and Ethereum responded positively to this as the FED fulfilled investors’ expectations.
In addition, ETH’s price seems to be benefiting from the apparent imminent deployment of “The Merge”. An event is set to combine Ethereum’s execution layer with its consensus layer, and fully unlock the network’s Proof-of-Stake (PoS) potential.
As ETH is set to reduce its energy consumption, to implement new scaling solutions, a pseudonym analyst called CroissantEth attempted to break down these “fundamental changes” to the network. The analyst pointed out new trends as Eth2.0 enters the picture.
The analyst said:
𝘙𝘦𝘢𝘭𝘭𝘺 𝘤𝘳𝘰𝘪𝘴𝘴𝘢𝘯𝘵, 𝘢𝘯𝘰𝘵𝘩𝘦𝘳 𝘌𝘛𝘏 2.0 𝘵𝘩𝘳𝘦𝘢𝘥? No. It’s not just about any. We’ve already talked about ETH 2.0. This thread will be devoted to game-changers. Things that are only made possible thanks to ETH 2.0 & the upgrades it introduces.
Ethereum Enters A New Era
An analyst mentioned that Ethereum could be staking pooled for ETH, which was at the top. This is one of many reasons Ethereum has been gaining institutional interest. This asset will have a greater potential to generate yield and will allow holders to receive transaction fees as well as additional rewards.
This could potentially impact ETH’s adoption levels and increase inactive users. An analyst also highlighted the potential introduction of staking derivatives which may provide additional incentive to users to lock ETH.
It could lead to ETH being a deflationary assets narrative, and possibly trigger a supply shock. Eth 2.0 will feature both scalability as well as rewards and incentives. Analyst:
Cross-chain stuff is cool & all, but how about cross-rollup tooling? People haven’t been paying enough attention to this. dApps that bridge the gap between optimistic & zkrollups have a great future ahead of them.
Ethereum could scale up and be able to process thousands of transactions per minute using Optimism (ZK), and Zero-Knowledge Proofs Technology. This has been the biggest driver for ETH “Killers”, but the trend could reverse if people have access to cheaper ETH transactions.
9. Privacy
I couldn’t mention zkproofs without mentioning privacy, right?
Privacy should be our top priority.
Zero knowledge verification is possible for any function using zkproofs without disclosing the underlying data. This is massive.
Ex. .@Sismo_eth pic.twitter.com/2voucJ86cD
— croissant (@CroissantEth) March 28, 2022
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Other trends Croissant identified that Ethereum could be a powerful tool for adoption in new use cases. Croissant concluded:
All of what I’ve described in this thread may be the spark we need for the next big run. If everything goes as planned, we will see a fresh chapter at ETH. These aren’t things you’ll want to ignore… I hope everyone enjoyed this thread!