Ether is the native cryptocurrency of the Ethereum blockchain network and is reaching higher and higher highs.
Ether ( ETH ) is the native cryptocurrency of the Ethereum blockchain network and hit a new all-time high on January 25th.
The technical analysis shows that the ETH / BTC pair is breaking out of its multi-year downtrend and has reached its highest level since September 2019. This is good news for altcoins in general.
Just under a week earlier, the ETH / USD pair had finally broken its all-time high and exceeded the $ 1,400 mark for the first time in three years .
Very positive mood in the community
The mood around Ethereum has become significantly more positive since ETH broke its previous all-time high of January 2018.
Anthony Sassano, a longtime Crypto Trader investor and marketing director at Set Protocol, said the rally reflects the foundations laid by developers in the Ethereum ecosystem over the past three years.
ETH and BTC development since the beginning of the year. Source: Digital Assets Data
Throughout the 2019 bear cycle, ETH suffered the most from the other large capitalization cryptocurrencies. Compared to BTC, it consistently underperformed and struggled to gain momentum.
But with this new dynamic as a result of the increasing DeFi demand, ETH has managed to outperform Bitcoin in this bull cycle . Sassano said :
“It may be hard to believe, but the main reason I love seeing $ ETH go up isn’t because of the profits. It’s the fact that so many dedicated members of the Ethereum community have spent 3 long years playing in the To build something in the course of a brutal bear market. And now your work is being rewarded. ”
The on-chain data also shows a similar trend as well as numerous other indicators that suggest that the ETH price rally may have only just begun.
According to the researchers at Santiment, the development activity at Ethereum, for example, has developed similarly to the ETH course.
This trend shows that the current ETH rally is building on strong fundamentals and high developer activity. That also makes them more sustainable. The researchers said :
“#Bitcoin and #Ethereum each dominated each other here in January. We found that the #Github development activity of the two projects fluctuated closely with the respective exchange rates of $ BTC and $ ETH.”
Analysts say the momentum from ETH and the network effect of Ethereum show that it is one of the most important assets in the cryptocurrency market.
Alex Saunders, a cryptocurrency investor, said “most agree” when it comes to the qualities of Ethereum as a major asset. He said :
“Two years ago, $ ETH fell 90 percent in 9 months to $ 80. Most had written it off. But here we are at new all-time highs of nearly $ 1500. Its network effects are undeniable and most of them agree that it is an important asset. I love that. “