Cryptocurrency Analysis

[IFX_Selena]

Ethereum rallies ahead of important network update



Ethereum has been soaring since last week, in anticipation of the update that will help its subsidiary network become faster and more energy efficient.

Data shows that it is up 10% since October 19, while Bitcoin is down almost 3%. Ether also outperformed other digital tokens such as Binance Coin and Cardano.

As mentioned above, growth occurred ahead of the scheduled update today, October 27, which will not only make the network faster and more scalable, but also lower user fees.

All in all, Ethereum has skyrocketed nearly 1,000% in the past 12 months, outpacing Bitcoin's 380% growth. One of the reasons is the network's popularity for applications such as DeFi and NFT.



But like other cryptocurrencies, Ether is also prone to large fluctuations so it's not a surprise that it lost more than half of its value earlier this year before recovering. On Tuesday, it traded around $ 4,200.

In any case, bulls are using the options market to advertise a potential Ether ETF announcement, said crypto liquidity provider B2C2.

Meanwhile, Bloomberg Intelligence strategist Mike McGlone commented: "The dollar value of Ethereum futures open interest rising to where Bitcoin was in July indicates that ETFs tracking the No. 2 crypto should be a matter of time. ETF providers have been discouraged by the SEC from launching products on Ethereum, but futures trading, demand-pull forces and competition suggest its inevitability."





Andrey Shevchenko
Analytical expert of InstaForex
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