Over the past two weeks, the price of Ether has risen 75% as the price has risen from $ 222 to $ 400. Many investors believe that Ether's momentum is driving the entire market and could push Bitcoin (BTC) to rally.

There are three factors that seem to drive the strong growth in Ether: DeFi, ETH 2.0, and the current long-term growth that is taking place in the altcoin market.

DeFi Rising Rocks Alternative currencies, but there are bear characters
Since mid-June, the total value reflected in Decentralized Finance (DeFi) protocols has increased steadily. The issuance of protocol tokens such as composite COMP has increased the demand for DeFi.

Eventually, users discovered a phenomenon called “growing crops”, which attracted users who were looking for higher profits in the DeFi market and switched from one protocol to another to get incentives.

The phenomenal growth in the DeFi market in a short time has resulted in a rapid increase in DeFi-related icons. In July, it appeared that investors had sold DeFi codes and other large currencies with little market value and switched back to Ether and Bitcoin.

Ether hit a $ 395 two-year high on BitMEX on August 1, but it warned traders of a possible downturn. In fact, crypto trader Edward Mora said:

“Yes, a parabola from another parabola is a sight to behold. It is also not sustainable and will fix it. If you are new to this place, buy a dip, do not think of the top. ”

ETH 2.0 supports Ether Pulse
The ETH 2.0 forecast is a positive positive factor that supports the bullish momentum in Ether. Ethereum developers plan to launch the final ETH 2.0 test called Medalla in August.

Once launched, ETH 2.0 will gradually remove miners from the network and reward users for joining the network. The incentive system will allow users to regain their essential properties for a long time.

Kelvin Ko, co-founder of venture capital Spartan Black, recently suggested that each step in the ether run Ethereum. Ko sa:

“Each phase of ETH 2.0 over the next 2-3 years will bring Ethereum closer to its final state and will be a catalyst for ETH.”

The Altcoin season continues
The increase in Ether and Bitcoin over the last three days has coincided with a fall in the price of alternative currencies. In the short term, the profit ceiling cycle can continue if there are regular bullish trends in alternative currencies.

In the previous bull market, large cryptocurrencies and smaller alternative currencies showed an inverse correlation, which means that when the price of bitcoin rises, the values ​​of the alternative currency fell.

The opposite remains true when the bitcoin price is stable or consistent. This creates a cycle that forces BTC and ETH to take more profit paths.

Satoshi Fleber, a popular Twitter trader, suggested that in the long run, the main opposition to Ether would be $ 780.

It remains to be seen whether the ETH 2.0 merger, winning pools and the increase in DeFi can push the price of ether against areas with higher resistance. At the moment, alternative currency sentiment is largely positive in the medium term.

Source: CoinTelegraph