Why are some investors piling up Ethereum?
Despite experiencing few bullish moves and suffering a number of historical lows, Ethereum is one of the altcoins that investors are buying the most. Why? Although the reasons are not entirely clear, it would seem that the reason investors are optimistic in the long term is the imminent release of ETH 2.0. The trial migration from Ethereum to 2.0 is slated to take place sometime in the third quarter of this year, and will transition Ethereum from its current Proof of work consensus system to Proof of Stake. (Proof of stake).
Although ETH has stalled on a downtrend from the $ 290 highs of February this year, it has not been enough to thwart buying pressure from retail and institutional traders. These two groups of investors have been using the relatively low prices of the cryptocurrency as an opportunity to gain exposure to it, suggesting that they still believe their long-term outlook is positive.
In the time since these annual highs were set until today, the second-largest cryptocurrency has underperformed Bitcoin, which recently revised its annual highs before facing stiff rejection. And now that Bitcoin can't seem to climb into the five-figure price region ($ 10,000) it could drive the entire market into a downtrend, which could be dire for ETH due to its recent weakness.
This technical weakness has not been enough to discourage investors from gaining exposure to the cryptocurrency. Recent data from the Glassnode analytics platform shows that the number of wallet addresses with more than 100 ETH has skyrocketed in recent times.
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Posted Using LeoFinance
