Ether, the native token of the Ethereum network rose over 14 per cent intraday on Tuesday, as per data from CoinMarket Cap.
The cryptocurrency was trading at $1,440 in the wee hours of Tuesday morning and rose to
$1,601 at around 6:00 AM IST. The cryptocurrency rose by 14.82 per cent intraday, data from CoinMarketCap revealed.
The Ether token was trading at $1,525.78 at 16:20 PM IST, with a live market cap of $186,632,696,182 and a circulating supply of 121,606,972 Ether tokens.
Crypto market experts, analysts, and traders seem to have positive forecasts about the future of the Ether token based on its fundamental and technical analysis.
Ether leads altcoin rally
Charles Tan, CMO, Atato tech told Business Today, “The overall crypto market cap crossed the $1 trillion mark on Monday with Ether leading the effort.”
Sharat Chandra, Vice President, EarthID, a web3 platform, told Business Today, “Ethereum witnessed a strong recovery over last five days.”
Bull-run for Ether
Chandra also mentioned that the technical indicators signal positive forecasts for the crypto token. He said, “Technical indicators for Ether token signal that an immediate bull run is in the offing.”
What is driving this rally?
Tan reasoned that Ether’s growth could be attributed to the steady transition in its consensus mechanism. The Ethereum blockchain network currently works on the Proof of Work consensus mechanism, which is extremely energy consuming. But the blockchain network is steadily transitioning to the more efficient Proof of Stake consensus protocol.
The final testnet, the Goerli testnet is expected to occur next month, which would pave the way for the final merge. It is anticipated that the final transition would be finished by the end of 2022. Tan said, “Ethereum’s latest upgrade has sparked investor interest and the announcement that Ethereum will be moving towards a more energy-efficient proof-of-stake mechanism which may have contributed to a rally over the day.”
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