Ethereum has seen a massive gain of recent that has seen it surpass ripple. The gains of Ethereum made it the top performing digital currency in December with a consolidation of over 80% increase in price.
What can be described as a corrective rally as seen in Ethereum over the past 30 days as the Cryptocurrency rise from the worth of $83 to $150. The performance of the digital currency has seen it overtake ripple as the second rated Cryptocurrency in the global market after a gain of 7% on January 2nd, 2919.
How Ethereum Rose in Value Within 30 Days
Ethereum saw a wide fall from $220 to $83 between the early November 2018 and the middle of December of 2018. This massive fall took place along with other Cryptocurrencies as the Cryptocurrency market saw a deep plunge in its bearish trend in November 2018
However, within the middle of December and now, there has been a massive move from $83 to $150. The recent rise is still yet to reach its November value of $220. There is still a move of 46% in value needed before the threshold is reached.
Notably, two reasons that can be adduced to the recent rise in value and are the oversold condition of the crypto market and the upcoming Constantinople fork.
The oversold condition that followed the massive plunge in the bearish trend of ethereum between November and December led to the relieve of sell pressure on the crypto asset which allowed it to recover.
Alex Krüger, an economist and a cryptocurrency trader, noted on the Christmas eve in 2018 through a tweet that “Ethereum’s Constantinople fork is coming on block 7080000, around January 16, 2019. Constantinople will reduce the block rewards from 3 to 2, decreasing new ETH supply accordingly. On the long run, this is decidedly bullish.”
According to Alex, this is going to increase the demand for ethereum as the fork would reduce the block rewards of ETH from 3 to 2. The reduction of the block reward of ETH restricted the amount of ETH miners can generate and will lead to a gradual decline in the potential circulating supply of ETH.
Further, according to Alex, history of the previous fork of ethereum has led to an increase in the value of the digital currency, and this could be seen again in the upcoming fork.
Crypto Market Condition
The market capital value of the crypto market stands at $130 billion at the moment which is a massive loss to what was obtained at the beginning if 2018.
Despite the recent move of Ethereum, the market cap remains a discouraging factor for its recovery of value except the crypto market gains more capital.