Today Ethereum Surged To $500 During the Crypto Market Boom
On Nov 20, 2020
Ethereum passes the $500 level for the first time in more than two years. The main question is that will Ethereum hold that movement?
One of the major cryptocurrencies, Ethereum, begin a bull run after Bitcoin. Ethereum has the second highest market capitalization in the crypto market. Ethereum was preparing itself during previous days to overcome the resistance level of $500. Finally, Ethereum is traded for slightly over $500. During the day, Ethereum made more than a 7% increase in price.
If we analyze the past behavior of Ethereum, we can see that investors were waiting for this moment for a long time. The last time Ethereum was over $500 in July 2018. Ethereum even dipped to $80 in December 2018.
Hash Rate of Ethereum Increases
The hash rate of Ethereum also increased in the context of the price surge and reached an all-time high yesterday. According to The Block, the hashing rate was 256 terahash per second in terms of 7DMA (seven-day moving average). It means that miners are joining the network to collect rewards.
Possible Reasons for The Rise in Price of Ethereum
There are some reasons for the price increase. Many DeFi projects are on the Ethereum platform, and it can be one reason. DeFi projects gained significant appreciation against the USA dollar. Almost every DeFi project increased TVL (total value locked) according to DeFi Pulse. Among them, the highest winners are the members of DEXes, such as Kyber (18%) and Bancor (11%). Secondly, the reason could be the uncertainty of investors. Some investors may think that investing in Bitcoin is late because Bitcoin already increased enough. Now, people can turn to Ethereum as the main investment option.
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