Ethereum (ETH) has been surging for the past 48-hours. From a look at the charts, it is clear that bullish momentum is on the rise. Buying volumes are up, and it has broken key resistance points across multiple timeframes. Does this mean that Ethereum is at the beginning of another Bull Run? Possibly yes. Chances are that it could be in the early stages of another Bull Run. There ae a number of factors that support such a possibility.
The first one is Ethereum Staking. Ethereum is working towards moving from Proof-of-Work to Proof-of-Stake. Already the Casper protocol has been formalized, which means that the implementation is not far off. The number of Ethereum (ETH)) required to stake has been set at 32 ETH. In essence, now that the process is well on track, investors could be moving to stake up on Ethereum, in anticipation of this shift. That’s because, at the moment, Ethereum is extremely cheap, and this presents a perfect entry point for investors looking to stake Ethereum (ETH). This explains the increased buying pressure in Ethereum. This buying pressure could also be driven by the growing perception that the entire market could have reached the bottom. As such, there could be a rush to stock up for the 32 ETH before it gets too expensive and out of reach of most investors. For instance, if staking were to come when it’s above $500, most retail investors would be priced out.
Then there is the fact that Ethereum is slowly moving towards solving the problems that have plagued it for some time now. For instance, a blockchain platform called Streamr has released an Ethereum scaling technology called Monoplasma. This solution will play a huge role in opening up the Ethereum Dapps ecosystem. That’s because, Ethereum Dapps will be in a position to broadcast dividends, staking rewards, as well as airdrops. In tests, it has been shown to do up to one million payments a minute. That’s a huge figure, and indicates that Ethereum could be getting close to achieving practical scalability levels, suited for real world business needs.
The possibility of Ethereum (ETH) rising on the basis of its ability to scale will be quite high. That’s because, it is the most entrenched the platform blockchain in the market today. For instance, it has one of the largest developer networks of any other blockchain. Ethereum also has huge connections to the business world, through the Enterprise Ethereum Alliance. The only thing that has always held Ethereum back is its inability to scale. Once this is resolved, it will be game on for Ethereum (ETH). Investors know this, hence the reason why Ethereum (ETH) always surges after every major drop.
On this basis, Ethereum (ETH) could emerge as one of the best cryptos to hold this year. If bulls return and drive up the entire market, Ethereum (ETH) could easily rise to over $2000. The fundamentals for such a move are quite high, and it’s already showing sending the right signals.