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Ethereum (ETH) up 5%, Three Key Factors Driving Growth

Thu, 02/02/2023 - 13:03
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Godfrey Benjamin
Ethereum price is up by 5% as crypto market turns green
Ethereum (ETH) up 5%, Three Key Factors Driving Growth
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With the broader jump in the performance of most crypto assets today, Ethereum (ETH) is notably riding the train. The price of the digital currency is pegged at $1,671.53, up by 5.69% over the past 24 hours at the time of writing. With the growth, Ethereum is now rebuilding its week-to-date (WTD) metrics, having accrued just about 4.13% within that time frame.

While the most important factor fueling the growth in the price of Ethereum remains broader crypto market sentiment, two other distinct factors can be pointed out.

First is the intense activities of both retail and whale buyers, according to popular crypto market analytics platforms. While Glassnode showed that the total number of nonzero addresses topped 93,275,549, an indication of intense buying, WhaleStats confirmed the use of the Ethereum protocol by whales, as measured through the accumulation of altcoins like Gala (GALA) and Chainlink (LINK).

Besides this, the network activities have lent positivity among all Ethereum investors. Besides the circulating supply of the digital currency dropping to its lowest point, the public testnet that will help simulate the staking Ether withdrawal process has also been launched, per an earlier U.Today report.

Ethereum (ETH) Starts Making Moves Ahead of FOMC, Here's How Things May Turn Out

Ethereum's journey to $2,000

Following the completion of the transition of Ethereum from the proof-of-work (PoW) model to the proof of stake (PoS) through The Merge, many expected a corresponding upshoot in the coin's price.

With the positive rally Ethereum has gained thus far this year, the projection that it will retest a new high of $2,000 has resurfaced. While this price growth, if it happens, will not come as a surprise seeing as Ethereum's all-time high (ATH) remains pegged at $4,891.70, the projected short-term $2,000 growth might be unrealistic.

This is because, with the advent of the Shanghai upgrade, a number of staked Ethereum may be withdrawn and liquidated, a trend that may tank the price of the coin.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.