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$2,500 Now In Play For Ethereum

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@lordneroo
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Ethereum jumps to all-time high, options markets are leaning bullish.

It has been a great couple of months for Vitalik's child, which is currently swinging around the $2,080 mark. Ethereum hit a new all-time high of $2,144 earlier today, and a number of market indicators reveal that there's a lot more to come in the following weeks.

There are technical reasons why professional traders remain highly optimistic, and that's just for starters. According to data shared by crypto options analytics firm Genesis Volatility, professional traders are currently buying the $25,000 call option expiring on Dec. 31, 2021 listed on Deribit. We are talking about the world's largest crypto options exchange by trading volumes and open interest, so it's a big deal.

Furthermore, with Billionaire investor Mark Cuban shilling Ethereum on a recent podcast episode, and admitting he owns a lot of it as he believes it to be the closest to a true currency, I think there's a lot of fresh blood currently entering the fray, given the size of this man's platform.

“What really changed everything was smart contracts,” Cuban said. “Smart contracts came along, and that created DeFi [or decentralized finance] and NFTs [or nonfungible tokens]. That’s what changed the game. That’s what got me excited. That’s why it’s a lot like the internet.”

Moreover, the Berlin upgrade scheduled to go live around Wednesday will introduce four new Improvement Proposals to the Ethereum network, which aim to improve performance and security, and set the foundations for future upgrades.

See below some brief information about all four EIPs:

EIP-2565: ModExp Gas Cost

To accurately reflect the real world operational cost of the ModExp precompile, this EIP specifies an algorithm for calculating the gas cost. This algorithm approximates the multiplication complexity cost and multiplies that by an approximation of the iterations required to execute the exponentiation.

https://www.youtube.com/watch?v=riBALRAw1Mw&feature=youtu.be

EIP-2718: Typed Transaction Envelope

By introducing an envelope transaction type, we only need to ensure backward compatibility with existing transactions and from then on we just need to solve the much simpler problem of ensuring there is no numbering conflict between transaction types.

https://www.youtube.com/watch?v=JReJRJ5G_UA

EIP-2929: Gas Cost Increases For State Access Opcodes

The conclusion is that on average gas costs increase by ~2.36%. One major contributing factor to reducing gas costs is that a large number of contracts inefficiently read the same storage slot multiple times, which leads to this EIP giving a few transactions gas cost savings of over 10%.

https://www.youtube.com/watch?v=qQpvkxKso2E&list=PL4cwHXAawZxqu0PKKyMzG_3BJV_xZTi1F&index=6

EIP-2930: Optional Access Lists

Access lists are difficult to construct in real-time in many situations, and this is exacerbated in environments where there is a high time lag between transaction generation and signing or simplicity of the transaction generator is highly valued (eg. either or both may apply in hardware wallets).

https://www.youtube.com/watch?v=qQpvkxKso2E&list=PL4cwHXAawZxqu0PKKyMzG_3BJV_xZTi1F&index=6

A look at the surging futures' basis is all the evidence you need that traders anticipate $2,500 ETH any time now, and market sentiment is a key factor. I mean we have even witnessed useless projects like Dogecoin perform well and break one record after another due to mere speculation and only, so the signs are definitely good for ETH.

It's going to be a spectacular year.

Taking into account all of the above factors, and also considering that Q2 2021 has just begun, I can see Ethereum gearing up for a massive rally in the coming weeks, but this is just my personal opinion, and you should take everything you read in this post with a grain of salt, especially price predictions.

However, if you ask me, I do believe Ethereum can keep climbing up throughout the year, and we will probably witness a massive rally towards the end of Q3 2021. EIP-1559 aims to fix the surging gas fees and is planned to go live in July, so there will be plenty of time for action before the next quarterly reports. I'm guessing institutional money will set the scene on fire somewhere around that time.

With 2021 already proving to be a spectacular year for crypto and a large number of internet users getting interested in the crypto game and joining in every day, I think we can all be optimistic about the future of the space. Central banks have been speeding up money printing due to the ongoing lockdowns and the economic impacts tied to the situation, and this is acting as a catalyst for crypto adoption.

Crypto is starting to go viral, and those invested for a long time will undoubtedly reap the reward. They say that holding beats trading in a bull market, but I'm not the one to judge investors who like to ride waves. I'm just going to say that this year is going to be a year to remember, so fill your bags, sit tight and enjoy the ride. You won't believe how much will have changed come Q4 2021.


Thank you for your attention.

Alright guys, that's it for now. Thank you for taking the time to read these lines.

Just my two cents. This is by no means financial advice. Just sharing my personal views and experiences. Please do not take my word for your investment choices, and always do your own research.

Stay safe and have a good one, @lordneroo Image Sources: 1, 2

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