Ethereum Is Predicted To Break New ATH In The Near Future, Really?

Ethereum price is predicted to break through the new ATH (Coin-Insider)

JAKARTA – The cryptocurrency Ethereum (ETH) is getting closer to its all-time high price (ATH). The number two cryptocurrency after Bitcoin has penetrated 4,000 US dollars (equivalent to Rp57 million). ETH experienced a positive trend in the past week, experiencing an increase of 20 percent.

According to Coindesk, technical charts show that ETH is set to continue its advance towards ATH around the $4,300 it broke on May 12 before a sell-off of nearly 60 percent.

As is well known, Ethereum had its London hard fork upgrade last August. The upgrade had a role in boosting the price of ETH at that time.

In addition, the boom in non-fungible tokens or NFTs and skyrocketing market interest in decentralized finance (DeFi) have also contributed to the rise in the price of Ethereum.

“The number of ETH tokens locked into DeFi is increasing. This puts additional pressure on the supply of crypto assets as more tokens are essentially unavailable in the market for trading,” crypto-asset analyst Simon Peters of eToro told CoinDesk.

“ETH staking is growing. Currently, around 7.2 million ETH is staked, which is equivalent to about 6% of ETH tokens, again limiting supply,” Peters wrote.

For information, staking is an activity that allows a coin holder to earn passive income by validating transactions. Users must first store or lock their crypto holdings in a digital wallet until it can be considered “legitimate” to earn the income.

Staking activities can only be carried out in coins that use a Proof-of-Stake consensus or commonly called PoS. In addition, staking cannot be carried out in types of coins that use the Proof-of-Work or PoW consensus.

At the time of writing, the price of Ethereum crypto was at the level of Rp55,840,496 based on data from CoinMarketCap at 20:03.