Ethereum’s price suddenly jumped today by around 5% at the time of writing, quickly rising from $90 to $94 in what may be a break-out move upwards, which may suggest a potential bull run.
The currency has sort of been moving sideways for the past five days, which isn’t really a long time, but traders began to feel very bored, taping their fingers and trying to poke eth into movement.
It may be somewhat early to say, but the currency is now moving and it seemingly has decided to move upwards, perhaps headed for $100, a significant psychological threshold and resistance point.
It didn’t touch it last time, stopping at around $97 in a contemplative manner, seemingly wondering whether it should break $100 or not. The market’s decision then was, nah, aided by some Kraken shenanigans which turned the price direction towards testing resistance.
That resistance held very well, giving the market some confidence, but Coinbase gave us one of those famous lines which amounts to “we are victims of our own success.” Apparently people are flooding them with money, but Coinbase just won’t take them because they can’t handle the volumes.
So there was some backlog for fiat deposit clearances which might be ongoing (try a blockchain Coinbase, we heard it’s very good for clearances.) Now, we don’t really know where all this money is going, but bitcoin and many other digital currencies are down, while eth is moving up.
The potential reasons are far too many. One of them might have perhaps been given by Brian Armstrong who stated that ethereum is a blank slate in terms of reputation which may be relevant considering the recent events.
Another reason may be a new potential doteth boom. $25 million have bid for ethereum names now, up some $13 million in just three days since I last covered ENS. Arguably, this project itself might be having an effect on the price in two ways, or maybe three.
Firstly, demand for eth might rise purely because people want to secure an eth name, maybe not necessarily because they care much about it or about eth, but might be thinking of securing it in a just in case manner.
The ENS is all decentralized, so, if this catches on, companies or whoever won’t be able to petition GoDaddy or whatever, to take down the name for trademark violations etc. They’ll be stuck with paying up or begging the owner if he won’t give it for ideological reasons or, more easily, just secure it now when it’s available.
The second aspect is ENS takes out eth supply from the market and locks it in a vault sort of thing, so if demand remains static then price should rise due to reduced supply. That supply might eventually enter the market, but you’d think new one would be locked.
The third potential aspect is that it’s just a good story. Headlines like eth name goes for $2.6 million bring to mind the dotcom gold rush, so some mainstream outlets have already covered ENS.
The other coin of this is a slight level of anxiety because the rate of eth value secured through ENS smart contracts is growing at an incredible rate. At this speed, we might be hitting $50 or $100 million by the end of the week, which makes it a huge bounty.
So, hopefully, when Emin Gün Sirer and his Cornell team get around to having a look at the ENS code, they find it to be sound rather than telling us the contract has so many attack vectors some of them cancel each other out.
There’s no space here to go into other matters, such as upcoming major events which may affect the price, but next week should be very busy for us journalists as the world, as far as our space is concerned, will descend on New York City and much of their discussion will probably revolved around ethereum.
Featured image from Shutterstock.
Last modified: March 4, 2021 4:56 PM