It’s been a while since Ethereum has made the headlines for something positive. The asset had been performing so poorly for so long that many had given up hope of a potential recovery.
Its constant struggles to keep up with its long-time arch-rival Bitcoin, which widened the gap between the two, and its inability to make more substantial gains during bullish times, made Ethereum appear as a frail and failing crypto, a shadow of its former self.
The fear and pessimism surrounding Ethereum had gotten so bad at one point that the gloomiest forecasts saw the asset heading towards a slow but certain demise.
The voices of those who remained supportive of the main altcoin grew weaker and weaker, being gradually drowned by those chanting its downfall. But now that we see Ethereum edging closer to its all-time high and the ETH price prediction looks more promising than ever, it turns out that Ethereum stans were right all along.
The crypto is nowhere near obsolete. On the contrary, it’s getting stronger by the day and, by all accounts, this is only the beginning.
Favorable figures
With a current trading price of $4,470.76 and a market cap of $539.65B USD, ETH continues to maintain a positive performance after previously topping its record of $4,891.70, recorded in November 2021.
Although the passing of this stubborn threshold was followed by corrections, there are signs of further appreciation. So far, the coin has gained 27% in the past month and over 70% over the past three months, and things seem to be heating up as Ethereum continues its rally.
As for Bitcoin, despite reaching a new ATH recently, its overall performance was less remarkable, falling by nearly 2% in the past month and registering modest gains of little over 9% in the last three months.
As usual, Ethereum’s solid comeback isn’t just some random occurrence, but the result of a combination of factors that we’re going to unpack straight away.
Sustained network growth
The Ethereum network has been a beehive of activity lately, with the number of daily transactions reaching an unprecedented high of approximately 1.875 million.
The month of July was particularly busy, as the system processed over 50 million transactions – the highest number in over a year. This signals a growing demand for the platform’s services and increasing engagement from users.
Analysts believe that the uptick in on-chain activity, which started in late July, was the factor that set off the current bullish rally, since the two events overlapped. The coin kept gaining momentum, getting closer and closer to its record levels.
Although its value has experienced a slight decline since, Ethereum remains within striking distance of its last ATH. It’s also worth mentioning that at one point during its recent ascent, the altcoin overperformed Bitcoin by a striking 124%.
Big players are stepping in
Although one can easily link the surge in network activity to Ethereum’s bullish momentum, there have likely been other factors at play as well. Experts point toward the involvement of large companies as a driving force.
BitMine Immersion Technologies, a US-based blockchain technology company engaged in the mining of digital assets, especially Bitcoin, has recently announced a strategic move where they plan to allocate $20 billion to boost their Ethereum holdings. These funds will be raised through the sale of newly-issued stocks.
The tech giant has already notified the Securities and Exchange Commission (SEC) of their intentions. Following the news of their investment plans, BitMine’s shares have almost doubled in value since the start of August, with the total value of the upcoming shares rising to approximately $24.5 billion.
At the same time, institutional interest in crypto has also surged. Encouraged by the increasing acceptance of digital assets and their growing legitimacy in the financial space, underscored by favorable regulatory developments, major institutions have started expanding their exposure to crypto, including Ethereum.
Both these aspects have brought their contribution to Ethereum’s present upswing and may come to play a key role in its future consolidation.
Is now a good time to invest in ETH?
Seeing Ethereum’s strong gains and the positive sentiment around it are enough to make some people forget that, until not so long ago, the asset was still blacklisted for investment.
This is not in the least unusual for the crypto market, where things change rapidly and investors have to move just as fast if they want to take advantage of the opportunities that arise. But should one jump on the Ethereum train right now just because the crypto is finally showing solid growth?
Given the gains it registered in the past months, Ethereum definitely seems to be a good option for investment at the moment. If some of the most positive predictions come to pass and Ethereum continues to appreciate, it could bring consistent returns for those who invest in it before the rally ends.
However, the simple fact that Ethereum is currently on an upward trend offers no guarantees of further price growth. It’s just as likely for the climb to come to a sudden halt and be replaced by a bearish narrative, which could cause investors to incur losses instead of the expected gains.
Ultimately, the decision lies with each investor, as they have to take into account their specific goals and strategies before making a move.
Final thoughts
Unlike market leader Bitcoin, known for establishing new personal bests on a regular basis, Ethereum hasn’t reached a new all-time high in years. So, it was about time for the largest altcoin to wake up from its slumber and start advancing.
Whether this progress will lead to yet another ATH in the future or not remains to be seen, but for the time being, most analysts seem to agree that Ethereum has officially gotten back on the playing field and is once again a commanding presence in the crypto space.
