Ethereum Latest News: Showing Strength
It was all eyes on the price of Ethereum at the end of the week as many industry experts predicted a sharp breakout is on the immediate horizon.
Twitter and the internet were yesterday alight with rumours that Ethereum was about to break out to the upside in a strong move reminiscent of late 2017.
The price of Ethereum against Bitcoin at the time of writing sat at 0.08btc with many technical experts expecting a surge to at least 0.2btc which, given the present price of Bitcoin hovering around the $56,500 mark, would bring Ethereum into the $11,000 territory.
With the long-awaited launch of Ethereum 2.0 due to be finally revealed sometime during Q1 of 2022, an increase in Ethereum’s price would seem like a sure-fire bet.
The Future of Finance
However, in typical Murphy’s Law fashion, as Ethereum came within 2% of its all-time high of $4,845, the United States Lower House announced details of a meeting scheduled for Wednesday, December 8th to discuss Digital Assets and the Future of Finance, leading to uncertainty and a cooling of the optimistic price action.
That being said, if the current price trajectory through 2021 continues, 2022 looks like it could be a very promising year for Ethereum.
In late 2017 the price of Ethereum against Bitcoin hit an all-time high of 0.15btc before cooling considerably through 2018 and 2019. In May this year, as the crypto market pumped in unison, we saw Ethereum reach 0.085btc leading to a price of $4,300. Since then, the price of Ethereum/Bitcoin has been consolidating just below 0.08btc although a significant break out above the trend line this week has created many new calls for optimism.
More turkey or time for something new?
While a 550% increase in the price of Ethereum through 2021 may sound like a cause for celebration, when compared against the 14,800% gains made by rival smart contract platform Solana it is clear Ethereum has a lot of catching up to do.
The major hindrance for Ethereum so far has been the low speeds and high transaction fees to conduct business across the network.
While it is still the number one place to go to for smart contract and decentralised applications (dApps) development, the high costs and slow speeds have made many of Ethereum’s competitors a much more attractive proposition. However, the general feeling is that the launch of Ethereum 2.0 will solve these issues and then significant building on the platform can begin in earnest.
Ethereum is thought of as the ‘home’ of DeFi with many of the industry’s latest finance protocols using Ethereum as their basis for their application. The same goes for the world of NFTs with many projects using the ERC-20 token to mint and launch their latest creations.
Both factors show the use of the Ethereum network is already strong and grew at an exponential rate throughout 2022.
The real question around the dinner table this Christmas is what impact will lower fees and faster speeds have on an already massively popular and trusted network? And what impact will this have on the Ethereum price.
Will it be turkey curry for days or can we afford something a little more extravagant in 2022? Only time will tell.
For more Ethereum news, see here.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.