When Ethereum (ETH) Ether price exceeded $ 450A huge buying wall was built on the large crypto exchange Bitfinex. Soon after, ETH hit $ 270, a 19-month high against Bitcoin (BTC).
The price of ETH versus the price of Bitcoin. Source: Skew
ETH has maintained a strong upward momentum over the past two months This has fueled the increase in user activity on Ethereum.
Etherscan data shows that The daily transaction volume on Ethereum rose from around 420,000 in January to over 1.2 million daily transactions in August.
Why the price of ETH is rising and the demand for Ethereum is growing steadily
The explosive demand for Uniswap and small decentralized financial brands (DeFi) has led to a steady demand for ETH. On the Ethereum blockchain network, users must use ETH to cover transaction fees, also known as “gas”.
Gas costs, as a result of increasing daily transactions, led users to buy ETH to pay network fees. Since the beginning of June, when the DeFi market saw exponential growth, it has been driving demand for ETH purchases.
According to the chain market analysis company Glassnode, lGas costs are rising so rapidly that miners’ incomes are skyrocketing. Researcher they write::
“The ETH miners have earned over $ 500,000 in transaction fees in the last hour. That’s a new record for a single hour (without the anomalous transaction fees from earlier this year). “
It is unlikely that the current trend will change in the short term. as second-layer scaling solutions and ETH 2.0 are still a long way off.
Hourly transaction fees for Ethereum spikes. Source: Glass knot
However, The DeFi market is growing steadily, bringing more users to decentralized platforms like Uniswap. It remains to be seen whether this would increase demand for ETH in September.
Given the demand, whales or wealthy miners are buying ETH. Bitfinex CTO Paolo Ardoino said::
“Someone really wants to buy ETH on Bitfinex’s 7k deal wall.”
Bitfinex is recognized as one of the few exchanges used by many whales alongside Gemini and Bitstamp. The 7,000 ETH with a price of $ 458 equals $ 3.2 million. This is a large one-time buy order on an exchange.
A purchase wall of 7,044,000 ETH on Bitfinex. Source: Paolo Ardoino
What traders are saying about the short term trend
Short term, Traders are generally optimistic about the price of Bitcoin and Ether. Both major cryptocurrencies saw their respective monthly candles close at multi-year highs.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said a small amount of consolidation was likely. After that, Van de Poppe suggested that the price of Bitcoin is likely to climb back to $ 12,400, with ETH leading the way.. Said::
“Bullish. It hit the $ 12,000 area I’ve been targeting since the low. I would like to see some consolidation above $ 11,600 here. In which case we will most likely see a rally towards $ 12,400 and make new highs ETH is already painting the way. “
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