- Ethereum dropped to more than half its ATH’s value following bear market pressures.
- The blockchain is recovering slowly, with countries clarifying crypto ban rumours.
- DeFi apps on the platform are also rallying for the blockchain value to rise.
Down from its ATH of $4,300 in early May, this week has seen Ethereum rise to highs of $2800. In the same month, however, Ethereum dropped below $1900 twice.
Following market bears’ call that reduced by more than half its value, will the bulls be able to take ETH to $4000 again?
As the crypto market recovers from the mid-month crash, instigated by Tesla Billionaire Elon Musk, hopes seem high regarding the second-biggest crypto’s market value. In fact, there is a good chance that the coin will rise, following recent developments.
Most notably, crypto top tier countries China and USA, as well as emerging market India, shared favorable clarifications regarding their respective crypto bans. The circulars alleviated fears of imminent crypto bans and restored investors’ trust in the industry.
Other than that, institutions continue to show major interest in the top blockchain. This includes Todd Morley, co-founder of investment giant Guggenheim Partners and recently-turned crypto-enthusiast, who says Ethereum has “much higher utility” than Bitcoin. He adds, that is “where the action is”.
“Ethereum, to me, has a much higher utility [than bitcoin] through smart contracts,”
DeFi protocols are also celebrating the Ethereum rally with as much as an 11% rise in recent days. Their values have risen in correspondence with the host blockchain.
Will these bullish signs result in a return to its ATH? Or perhaps, a further breakthrough to $5K? Only time will tell.