Ethereum continued to rise in price after the London hard fork. Experts explain the pump by the fact that the ETH is tied to the MTC. The logical question is whether traders will manage to make the exchange of Ethereum for USD. after the Bitcoin drawdown occurs. And is there still a tight connection between these assets.
Is the idea to sell Ethereum a premature decision?
The capitalization of all cryptocurrencies for the most part consists of the capitalization of Bitcoin. At the same time, the Proof-of-Stake protocol is not typical for every digital asset. Even bitcoin doesn't have it. As for ETH, all those who want to buy it starting from 5.08 will receive a reward. PoS operation is possible without miners, on whom the generation of computing power is envious. Thus, before the exchange, it is necessary to assess the risks, namely:
- Risk of losing the opportunity to conclude smart contracts;
- Lack of passive income;
- Existence of overpayment due to the commission in work;
- Inflation resulting from emissions.
Vitalik Buterin in 2020 confirmed the fact that after Ethereum entered phase 2.0, the size of its annual emission will be no more than 2 million tokens. Due to this volume, there is the possibility of periodic burning of crypto coins, which makes it possible for the target audience to make more expensive sales. Analysts, in turn, can verify destroyed tokens through the blockchain registry. Due to the hard fork, a mechanism appears in the ETH that allows you to burn cryptocurrency coins. From the point of view of trade, this function is disassembled, while from the technical point of view, conditions appear for unloading the network. So we can conclude that from the point of view of capitalization with ETH, there is every chance of overtaking Bitcoin.
Buy or exchange Ethereum?
The London hard fork has already been completed. However, there are reasons for ETH to make a full-fledged exit from the market. No. This is due to the fact. That there was no entry into phase 2.0 yet. As for the full start of the program, it is scheduled for next year. Sharding will also happen around the same time. Thus, we can talk about the long-term potential of the pump. However, at least a partial exchange of Ethereum is recommended. From an expert point of view, there are indications for this, such as:
- Recurrence of the BTS trend;
- The presence of many projects among altcoins, which demonstrate super-accelerated capitalization;
- Lack of data indicating overcoming of the resistance 3600-3800 USD.
Nowadays, the creator of the ETH plans to reduce the energy consumption of the thematic project by 99%. At the same time, experienced players try to buy ethereum in savings volumes of up to 43%. If we consider the period three years ago, then the size of this indicator was 36%.
The likelihood of capital growth over the corresponding period was high since those who held more than 10 thousand ETH in their account spent little for one coin. In total, within the range of 89-335 USD per unit, then there was a downtrend in the period 09/12/18 to 07/19/2020.