There Are Three Fundamental “Waves” That Could End Ethereum Bears in the Long Run

Although Ethereum has embarked on an impressive 170% rally since March’s lows, the cryptocurrency remains more than 80% below its all-time high of $1,430.

With such a strong retracement from its all-time highs, there have been some skeptics questioning if ETH will ever hit a new all-time high.

Fundamentals signs, though, are showing that ETH is poised to embark on its next long-term bull run.

Related Reading: Textbook Wyckoff Analysis Shows Bitcoin Is About to See a Brutal Drop to $7,000s

There Are Three Key Ethereum Bull Trends

Consensus Labs’ Jimmy Ragosa recently identified three fundamental “waves” that may mark an end to ETH bears:

  • Layer 2 Scaling Solutions: There has recently been an influx of Layer 2 scaling solutions that migrates transaction capabilities to a second secure layer, thus increasing transaction speeds and decreasing costs, all while increasing transaction throughput. Analysts say this will boost demand for ETH as the cryptocurrency becomes easier to use.
  • The Implementation of ETH 2.0: Shortly, the first phase of the Ethereum 2.0 upgrade will go live. It will introduce Proof of Stake into ETH tokeneconomics, driving inflation of the cryptocurrency lower over time, analysis has suggested. The introduction of staking is expected to result in an influx in demand from long-term holders who want to stake the cryptocurrency in exchange for interest on their deposit.
  • Ethereum Improvement Protocol 1559: An Ethereum Improvement Protocol, 1559, has recently garnered much steam in the cryptocurrency community. If implemented it would burn ETH for every transaction sent, resulting in a potential deflation in the circulating supply of Ethereum. This could skew the supply-demand dynamic in favor of price appreciation.

Technicals Also Bullish

The technicals are also bullish.

Dan Tapiero — the CEO of DTAP Capital, a…

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