Friday, May 14, 2021
Home Ethereum ETH's Price Growth Above $3k is Supported by High Transaction Volumes

ETH’s Price Growth Above $3k is Supported by High Transaction Volumes

  • Ethereum has broken past the $3k price ceiling setting an ATH of $3,204 – Binance rate
  • Ethereum’s NVT ratios indicate that price growth is supported by high transaction volumes
  • ETH has now exceeded Walt Disney and Bank of America in terms of market capitalization
  • Ethereum maintaining the $3k support will be essential for further growth

Ethereum (ETH) has lived up to the expectation of breaking the $3k ceiling in the month of May. Earlier today, Ethereum set a new all-time high of $3,204 – Binance rate.

Ethereum’s NVT Ratio Shows that ETH’s Price Growth is Backed by High Transaction Volumes

According to the team at Glassnode, Ethereum’s current price growth is organic and backed by high transaction volumes. Furthermore, Ethereum’s NVT ratio is low and indicative that the transaction volumes are growing at a faster rate than the network’s market cap.

The team at Glassnode shared this information through the following statement and accompanying chart highlighting how low NVT ratios are pointing towards a bullish future for Ethereum.

As $ETH price reaches over $3,000 setting a new ATH, the NVT Ratio is driven back down towards this cycles lows. Low NVT Ratios indicate transaction volumes are high and growing faster than the network market cap. Today’s market strength is supported by volume settled on-chain.

Ethereum Exceeds Walt Disney, Bank of America, Home Depot, in Market Cap

At the time of writing, Ethereum is trading at $3,173 with a market capitalization of $367.5 Billion. Ethereum’s current price action above $3k means that it has exceeded the following ‘traditional’ companies in terms of market capitalization.

  • Home Depot – $348.1 Billion
  • Bank of America – $347.31 Billion
  • Walt Disney – $337.67 Billion
  • Nestle – $337.38 Billion
  • Procter and Gamble – $307.99 Billion
  • Paypal – $307.99 Billion

What Next for Ethereum in the Crypto Markets?

With its new all-time high of $3,204, the second most valuable digital asset of Ethereum has literally entered uncharted territory. Therefore, Ethereum needs to hold several crucial short-term support areas above $2,700 if the current bullish momentum is to be maintained.

The crucial short-term support areas for Ethereum include:

  • $3k
  • $2,950
  • $2,860
  • $2,790
  • $2,722



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments