When Ethereum (ETH) broke the stubborn $140 mark last week it was the first time Ethereum extended gains above the key $142 mark since March 18th. However, with a key resistance level at $148 broken, investors are now looking to see if the digital currency can go on and break the $200 mark.
Ethereum has been one of the less volatile cryptocurrencies so far this year. It reclaimed the title of second largest cryptocurrency per market capitalization from Ripple (XRP) earlier in the much and generally for much of 2019, Ethereum predictions have been mostly positive as Ethereum moved higher. Last week we saw the whales move in. Almost $4 million worth of Ethereum (ETH) was transferred.
- 7,499 ETH (1,019,298 USD) transferred from Gemini to an Unknown wallet.
- 10,000 ETH (1,359,553 USD) transferred from OKEx to an Unknown wallet.
- 12,000 ETH (1,633,927 USD) transferred from Bitfinex to an Unknown wallet.
People are no longer asking what Ethereum will fall to. Instead, people are asking how high can Ethereum go. If 2017 was the year of the soaring crypto, 2018 was the year of reconciliation and recorrection. If the first three months of the year are anything to go by, 2019 could well be the year of the recovery.
At its peak in late 2017, Ethereum hit the giddy heights of approximately $1450. This seems a long way away from the $162 ETH is currently priced at today. However, breaking through the key $142 and then $148 resistance levels was a big move for Ethereum, which had been struggling to break out past these levels for months. So, is the next step $200 and beyond for the cryptocurrency?
Ethereum (ETH) Longevity
What separates Ethereum from most other digital currencies is the fact that Ethereum provides the platform to execute smart contracts and decentralized software and applications as well. The use and demand for decentralized softwares and applications increases by the day. Big banks and financial institutions have been increasingly investigating and researching how to utilise blockchain technology. Ethereum, along with Ripple (XRP), have so far, proved to be the technology of choice for many of the companies looking to optimize the crypto and blockchain advancements.
The smart contract feature of Ethereum is being used more than ever and governmental agencies are looking at the possibility of using Ethereum based smart contracts to provide better and more transparent governance.
Whilst governments and big businesses are researching the blockchain potential of the Ethereum platform, smaller businesses are accepting Ethereum more and more. The increasing use of Ethereum as an actual currency rather than an asset points favourably towards a long term future for the digital coin. As acceptance increases, demand also increases. With a rising demand comes rising value, which should only make raise the appeal of Ethereum (ETH)
Uptake in Ethereum Mining
Another aspect which often gets overlooked when discussing the viability of Ethereum long term, is mining. The margins attainable in Ethereum mining, far exceed many other cryptocurrencies. The rising number of Ethereum miners is also improving the scalability and potential of the whole Ethereum network.
Although ICO’s are a long way from their early 2018 peak, many new ICOs are built upon the Ethereum network. This makes the Ethereum token more widely used, increasing the demand and value of ETH.
The last point worth noting is that Ethereum (ETH) once hit $1450. It clearly has the potential to be $200 and higher, as it has been there before. Past performance should never be taken as a guarantee for future performance. However, the fact that Ethereum has been nearly 10x higher less than 18 months ago, does provide some comfort. Investors recognized Ethereum’s potential then, and that potential is being turned into reality more and more. So, why shouldn’t Ethereum hit $200 again?
Keep Ethereum on Your Radar for 2019
Ethereum is by far one of the picks for 2019. Its lack of volatility, its increasing usage and the solidity of the Ethereum platform all suggest a strong future for Ethereum. Last year was a year of consolidation. With a quarter of 2019 gone, all signs are pointing to a year of recovery for Ethereum.
If you haven’t already jumped aboard the Ethereum express, now is a good time to consider. Strong upward trend, solid increase in the usage and at a price that has room to rise. Ethereum – Strong Buy.
