Ethereum attacks $ 200 as a fundamental argument for ETH swells

While Bitcoin price has effectively flattened and found itself in no man’s land between $ 10,000 and $ 10,500, Ethereum has shown some strength.

This move caught many traders with their pants down as most expected Bitcoin’s market dominance to increase further.

At the time of this writing, the cryptocurrency has risen to $ 197, an increase of 3.5% over the past 24 hours, while BTC has seen a slight loss of 0.64%.

This strength in Ethereum’s price comes from the fact that the network’s fundamentals have continued to improve. Massive companies have started to take advantage of the technology, the decentralized financial (DeFi) ecosystem on Ethereum continues to grow in importance, and the network is used more than ever.

Ethereum in a strong fundamental position

In 2017, Ethereum shocked cryptocurrency investors, rising from well under $ 10 to $ 1,400 in about 18 months – marking one of the biggest short-term wealth creation events the cryptocurrency markets, even the entire financial markets, have ever seen.

That changed in mid-2018 when Ethereum started falling off a cliff as demand for decentralized applications (dApps) and initial coin offerings subsided. This caused Ethereum to drop into double digits by December 2018, a massive 95% drop from the asset’s all-time highs.

Ethereum gives and takes.

But the wind seems to be in Ethereum once again – at least from a fundamental point of view.

Last week, Spanish banking giant Santander announced on Thursday that it had paid off a $ 20 million bond on the public iteration of the Ethereum blockchain using ERC-20 tokens representing cash in custody. As CoinDesk wrote on this topic:

Previously, the World Bank had issued a similar blockchain bond but used a private version of Ethereum. French lender Societe Generale issued a bond on the public Ethereum network earlier this year but said nothing about the cash in the ledger.

A senior executive from Santander’s digital banking initiatives later praised the pilot transaction, claiming that he saw value in borrowing on public blockchains like Ethereum.

This is because the DeFi ecosystem has continued to gain traction, with DeFi Pulse claiming that there the amount of ETH locked in Ethereum financial applications is reaching an all-time high. At the same time, the number of transactions with Tether’s USDT stablecoin has continued to rise.

All of this has come together in a dramatically increased use of the Ethereum blockchain. Just take a look at Etherscan’s graph below, which shows that the load on the network (defined by average gas per block, which is above the gas limit per block) has been consistently trending for the first time in ages in the 90s.

ETH miners are considering new Ethereum gas limit in the middle of tether

Strong technical characters

For those who don’t believe the fundamentals are enough to drive the Ethereum price higher, there are also technical signs that ETH will maintain its upward momentum. Josh Rager, a prominent analyst and industry investor, noted Sunday that the ETH / BTC pair “has finally moved above the 20-day moving average and closed”. Rager believes that Ethereum’s regaining of this important level of support is a sign that the downtrend has ended, suggesting a bullish reversal.

Good question, good news is that ETH / BTC price has finally moved above the daily 20MA and closed

This is an important indicator that has confirmed the downward trend for months

We could expect a nice reversal confirmation after price breaks the resistance cluster overhead

– Josh Rager (@Josh_Rager) September 16, 2019

Skeptics persist

Despite this renaissance in Ethereum, there have been high-ranking investors who have continued to keep their distance.

On September 4th, legendary venture capitalist Fred Wilson published his latest blog on the cryptocurrency market. Under the title “Some Thoughts On Crypto” the blog outlined Wilson’s growing skepticism towards Ethereum. “Ethereum puzzles me, as many of you know,” wrote Wilson, a co-founder of Union Square Ventures.

This comes for those who don’t know after claiming in 2017 that ETH’s market cap has the potential to outperform Bitcoin by the end of the year. While the so-called “Flippening” was about to be realized in the summer of ’17, it never happened.

To date, it still hasn’t happened as Ethereum is currently trading for less than 0.018 BTC – about 85% below this pair’s all-time high.

Wilson went on to say that while the cryptocurrency platform has brought many innovations to the blockchain space – “smart contracts, programmable, trustworthy computing, potential proof of ownership and a lot more” – Ethereum is still “difficult to build”. The prominent venture capitalist explicitly mentions the “scaling problems” and the fact that developers might jump the ship.

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