With the price of Bitcoin locked in a small range, with resistance at USD 10,000, the rest of the ecosystem participants have remained fairly stable, accumulating orders that could lead to a big explosion. Ethereum (ETH) is in a very good position to take advantage of this situation, asking us if the price of Ethereum is about to explode.
Nevertheless, we could still see falls in the short term.
When an upward trend fails to continue quickly, bears are likely to take temporary control. But as I have repeatedly said, the cryptomonger sellers don’t have much room these days, before the bulls get the better of them.
Ethereum is one of the best found for a major upgrade. It has the necessary characteristics for some analysts to consider that it is undervalued, and an upcoming upgrade that will be the perfect rocket to the moon.
Is Ethereum (ETH) undervalued?
Ethereum is on its way to version 2.0, and its price is at a minimum
The price of the Ethereum is recovering after reaching an extremely low zone. This worked in the background in the fall of 2019, and after the strong crypto winter of 2018.
This time, the arrival to the zone occurred with the Black Thursday fall in March, promoted by the Coronavirus effect. However, today Ethereum has recovered by more than 180% from that 2020 low. It is clear that the fundamental value supports a higher price.
Today, the Ethereum network is the most active in the ecosystem, thanks to a network that promotes the development of DeFi (decentralized finance), capable of providing solutions to a multitude of needs, which do not necessarily have to be linked to the purpose of ETH as a crypt-currency.
A network without limits?
The Ethereum Blockchain is an environment of exponential growth, with tools that go far beyond being just a form of money.
It is thanks to this that it has secured its place as the second largest in the crypto market, and with a good advantage over the others.
There is no doubt that its ecosystem is one of pure positivism, if we focus on its capacity to grow
But, since nothing is pink, this brings its problems, mainly related to network scalability, which refers to the network’s ability to process requests.
The developers are aware of this. To solve this, work is currently underway on a network update, which is called Serenity.
The main objective of this update is to make a transition from the Bitcoin Loophole block chain to a validated Proof of Stake.
With the decrease of the network congestion, the ground will be cleared for developers to continue taking advantage of smart contracts, for the creation of Blockchain solutions.
Once we know the context surrounding Ethereum, we can analyze the situation and answer the question if the price of Ethereum is about to explode.