“If Bitcoin is the king of cryptos, Ethereum is the prince.” You may have heard this before. Well, do you know why this was said? Is it because bitcoin ranks first and ethereum ranks second by market volume? Wrong answer. Ethereum has led to the growth of the cryptocurrency space thanks to its excellent technology, especially smart contracts. That’s why ethereum is the prince of the crypto world. While Bitcoin provided the birth of the crypto space, ethereum enabled its spread.
Do you remember the ICO bubble in 2017? It was an industry that existed using ethereum technology. The DeFi field, which is rocketed in 2020, also gets its power from ethereum. Therefore, it is obvious that DeFi has an effect on today’s ethereum price. However, it is wondered how far DeFi can raise ETH.
Is $500 possible for ethereum?
It is definitely seen by many experts that ethereum may one day reach $500 again. We can only question how this will happen. The last time ethereum saw this price was June 19, 2019. Although we have witnessed many waves in the last two years, it is a strong candidate for the revisit of $500 in the coming weeks.
Higher demand always indicates higher price on paper. Since the demand for DeFi actually means demand for ETH at some point, in theory there is no reason why the price of ETH should not rise. It is said that ETH 2.0, which is currently under development, can also have a large share with DeFi in the price increase. The second version will turn the consensus algorithm into Proof of Stake while solving many problems in the network. Both the infrastructure will change and GAS fees will decrease. Who wouldn’t want to trade on a more problem-free and cheaper network? Increasing demand will increase the price.
There is a strong barrier
The ETH price has managed to move from $220 to $445 in the past five weeks. Looking at the last 18 months, this represents the biggest move for the number two cryptocurrency. However, according to leading analysts, there is a big obstacle for ETH on the $500 journey.
According to information reported by Cointelegraph analysts, the $340-360 zone will act as a resistance that ETH must break before it reaches $500. The coin that tried to break through this region in July 2019 was not successful.
So do you think ETH will be able to cross the $500 barrier soon? What would DeFi impact on this? Share your comments with us below.