ETH surge suggests long-awaited bull market
In the past 30 days, the price of ETH almost doubled, surging from $83 to $150.
On January 2nd, ETH overtook Ripple to be back to №2 in market value, regaining the ground it has lost.
There are many views over the reasons for the price surge in a short period.
Ethereum’s massive price rise over the past month is the likely result of two primary factors, consisting of being in oversold territory earlier this month, and its upcoming Constantinople fork.
When the price of ETH plunged from $220 at the market value of $830,000, the market confidence dropped and led to the upsurge of trading in a short period of time. The oversale eased the pressure to sell the digital assets and enabled the price to gradually return to its normal range.
Analyst Alex Krüger believed the upcoming fork / supply reduction and the BAKKT are the reasons behind it. In his analysis, in the decline in the ETH block reward has limited the capacity of ETH miners, which in the long run will lead to the potential decline in supply for ETH.
Krüger also said in the previous forks ETH had huge value increase. But the market conditions are quite different now. Given the historic performance of ETH, the analyst believes Constantinople form may be one of the reasons for asset price rise.
ETH remains one of the best-performing assets in December 2018, outperforming Bitcoin, Ripple and Bitcoin Cash.
Yet the market capitalization of digital currency is still stuck at $130 billion, far less than the past peak. It is therefore too early to say that ETH has entered into a middle-stage bull market.