When the price of Ethereum (ETH) surpassed $ 450, a large buyer’s wall appeared on the major cryptocurrency exchange Bitfinex. ETH hit $ 270 shortly thereafter, a 19-month high against bitcoin (BTC).
ETH has maintained a strong bullish momentum over the past two months, contributing to increased user activity on Ethereum.
Etherscan data shows that daily transaction volume on Ethereum has increased from approximately 420,000 in January to over 1.2 million daily transactions in August.
Why is ETH growing and the demand for Ethereum is constantly growing
The huge demand for Uniswap tokens and micro-decentralized finance (DeFi) has created a steady demand for ETH. On the Ethereum blockchain network, users have to use ETH to cover transaction fees, also known as “gas”.
The cost of gasoline has prompted users to buy ETH to pay for network costs as a result of increased daily transactions. Since the beginning of June, when the DeFi market began to explode, the demand for ETH purchases has increased.
According to market research firm Glassnode, gas costs are rising so fast that they are driving up mining revenues. The researchers wrote:
Ethereum miners have earned over $ 500,000 in transaction fees in the last hour. This is a new hourly record (excluding extraordinary transaction fees earlier this year). ”
The current trend is unlikely to change in the short term as measurement solutions at other levels and ETH 2.0 are far away.
However, the DeFi market is constantly expanding, attracting more and more users to decentralized platforms like Uniswap. It remains to be seen if he will increase demand for ETH during September.
Obviously, ETH is bought by buyers, whales, or wealthy miners. Bitfinex CTO Paolo Arduino said:
“Someone really wants to buy ETH on the Bitfinex 7k Display Wall.”
Bitfinex has been recognized as one of the few exchanges used by many whales, along with Gemini and Bitstamp. 7,000 ETH at $ 458 equals $ 3.2 million, which is a great one-time purchase on the exchange.
What traders say about the short-term trend
In the short term, traders are generally bullish on Bitcoin and Ether prices. Monthly indicators for both top cryptocurrencies are close to perpetual highs.
Michael Van de Pope, a trader at the Amsterdam Stock Exchange, believes a smaller merger is likely. Van de Poppe then suggested that another $ 12,400 bet would likely be for Bitcoin, with ETH up front. He said:
It reached the $ 12,000 range that I have been talking about since the fall. I want to see a consolidation over $ 11,600 here. If that happens, we will probably see a $ 12,400 meeting and new highs. $ ETH is already drawing a path. “