Over the past 30 days, the price of Ethereum has risen from $80 to $150, which is by 80% gain against the U.S. dollar in a robust corrective rally. On the 2nd of January, following a 7% gain in the price, Ethereum or ETH surpassed Ripple or XRP to reclaim its throne as the second most valuable crypto in the global market.
How ETH rise by 80% over the last 30 days?
ETH started this year with some welcome gains gain, climbing about 15% since the beginning of 2019 to $153 from several days ago. ETH also regained its number two spot concerning market cap rankings, according to CoinMarketCap, after it was recently knocked off by XRP.
The gain above $150 came after a brutal fall to double digits during the last month when the price of Ether dove as low as $80. It took just about two weeks to complete the roughly 90% gain back into triple digits.
The rally of ETH could face resistance between $170-185, which zone served as support in November, at the time of the trip down to of Ether to double digits.
There were two main factors which probably contributed to the short-term surge in the ETH price in December: oversold conditions, as well as the upcoming Constantinople fork.
From early November to the middle of December, ETH experienced a steep decline in value as the price fell from $220 to $83. Despite the increase of recently, which was for 80%, the asset is still to achieve the levels from November and would even have to gain by an additional 46% in order to rise back to $220.
The market also demonstrated oversold conditions subsequent to the sudden decline in the ETH price from November to December, relieving sell-pressure on the digital asset, as well as allowing the asset to recover.
The upcoming Constantinople fork of ETH
As an economist and crypto trader, named Alex Krüger said, the forthcoming fork of ETH, which is called Constantinople, increases the demand for ETG, as the fork is going to decrease the block rewards from 3 to 2.
The decrease of the block rewards of ETH restricts the amount of Ethereum miners may generate, which in the long-term is going to lead to a gradual decline in the potential circulating supply of Ethereum. While the supply of Ethereum goes down and the demand remains the same, the price of ETH is expected to go up.
The Constantinople fork of ETH is coming on block 7080000, around the 16th of January this year. Constantinople is going to reduce the block rewards from 3 to 2, reducing new ETH supply accordingly. On a long time, this is decidedly bullish, according to Krüger.
He also pointed out that in some previous forks ETH has increased substantially in value. While the state of the market is fundamentally different than in the earlier examples, in consideration of the historical performance of ETH, the trader suggested that the Constantinople fork could actually contribute to the rise in the price of the asset.
ETH was the best performing asset in December 2018
ETH is still considered as one of the best-performing assets in December of last year, outperforming BTC, XRP, and BCH or Bitcoin Cash.
Both as a project and as a digital asset, ETH took a shellacking during 2018, together with the rest of the crypto asset industry. The price of Ether declined about 95% during the same year, from almost $1,400 in January.
The Ethereum dApp indicator, Consensys, recently restructured its management strategy in a bid to be more productive, as well as deliver useful Ethereum dApps. The company has also fired 13% of its quite huge workforce – at the one-time number over 1000 – feeling the pinch of collapsing Ether prices.
Vitalik Buterin, the young creator of Ethereum, recently thanked for the things he was usually not thankful for. He praised both the fiat monetary system for doing a reasonably good job or being stable and also Donald Trump who supported progressive criminal justice reform in the United States.
However, the valuation of the crypto market is still at $130 billion, and it is far from recovering to the highs from previously, and as such, it is still too early to conclude that ETH started entering a mid-term bull rally.