Ether rallies to all-time high above $2,200 ahead of Coinbase listing, Berlin hard fork

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The cryptocurrency ether runs on the Ethereum network.

Ether spiked as much as 8% on Tuesday to a new record high ahead of Coinbase’s direct listing and Berlin hard fork, the next upcoming upgrade to the ethereum network, both happening on April 14.

Ether rose to a record high of $2,287, hitting a market capitalization of $250 billion for the first time. The world’s second-largest cryptocurrency has surged 205% year-to-date amid a broader cryptocurrency rally led by bitcoin.

“Ether is surging because it is relatively undervalued compared to bitcoin,” said Ian Balina, founder and CEO of Token Metrics, a data-driven investment research platform for cryptocurrencies. “Factoring in Coinbase’s $100 billion [valuation] that will bring new users to the crypto space, and ethereum being the only other crypto asset with CME futures contracts for institutions, one can see why Ethereum is surging.”

Bitcoin on Tuesday jumped to an all-time high above $63,000 on excitement ahead of Coinbase’s Nasdaq listing. Cryptocurrency bulls view this as a milestone for the digital currency ecosystem.

“Coinbase direct listing is good to bring mainstream attention to crypto companies,” Kosala Hemachandra, founder and CEO of ethereum wallet MEW. “However, it’ll be really interesting to see where they will be headed from now on. Can they pave the way so Coinbase stocks are actually tradable on Ethereum? I think that’s the way to prove how powerful blockchain can be.”

The Berlin hard fork, meanwhile, is part of an update to the ethereum network, which includes four major changes, which are broken down in a statement released by the Ethereum Foundation. Among others, the upgrades include introducing new transaction types and lowering gas costs.

Balina did add that the while Berlin upgrade is “interesting,” the London upgrade, expected in July, is what could make ether deflationary and more scarce than bitcoin, especially after introducing ether’s ability to be burned after transactions.

Ether’s latest record comes less than two weeks after the coin hit a high of $2,000.

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Ether is at a fork in the road and the cryptocurrency faces a key resistance level at $2,700, Kraken analysts say

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Ethereum’s cryptocurrency ether rose 35% in March, Kraken said.

Ethereum’s cryptocurrency ether is at a fork in the road and faces a big test in climbing above $2,700, according to analysts at crypto exchange Kraken.

Kraken analysts, led by Pete Humiston, said in a review of the market on Wednesday that ether had jumped 35% and outperformed bitcoin’s 30% gain in March.

Yet they said: “When looking at historical price action, ETH is at a bit of a fork in the road.” The world’s second-biggest cryptocurrency stood at around $1,990 on Thursday morning.

Kraken said on Wednesday that chart analysis suggested ether’s next big level of resistance is around $2,700. If it passes this level, it could break into a higher band where the next resistance level is $5,000, the report suggested.

Yet the analysts added that there is a danger ether falls below the key support level of around $1,460, in which case it could drop into a lower trading band where the lower support level is $990.

However, cryptocurrencies’ wild volatility means movements are hard to predict and makes technical analysis difficult.

Kraken’s report also said that the second quarter has historically been a good one for ether, which is yet to see a negative return in the period.

Ether has shot up more than 1,000% over the last year as interest in cryptocurrencies has boomed. It touched an all-time high of around $2,150 earlier in April and has traded around $2,000 over the last week.

Developers on the Ethereum network are set to make major changes to the system in July. The alterations will change how transactions work and start to destroy ether coins, which some analysts have said could lead to the price soaring.

Billionaire investor Mark Cuban told the Unchained podcast on Tuesday that he was bullish on ether and the Ethereum network, thanks to its many applications, including non-fungible tokens and smart contracts.

Yet cryptocurrencies continue to divide the financial world. Economist Nouriel Roubini on Tuesday reiterated his charge that bitcoin and other cryptocurrencies are too volatile and difficult to use to be currencies, on Bloomberg TV.

He questioned that there was any value in bitcoin and called it a “self-fulfilling bubble.”

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Ether jumps to all-time high above $2,000, in step with bitcoin’s latest rally

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The cryptocurrency ether runs on the Ethereum network.

  • The price of ether surged to an all-time high Friday in lockstep with bitcoin’s rally to just shy of $60,000.
  • “The main takeaway for me is that the increased capital flows into crypto is now making its way into more than just [bitcoin],” Jeffrey Wang of Amber Group told Insider.
  • Sergey Nazarov, co-founder of Chainlink, also attributed the surge in ether to the rise of decentralized finance, or DeFi.
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The price of ether, the world’s second-largest cryptocurrency by market capitalization, surged to an all-time high Friday in lockstep with the rally in the price of bitcoin.

Ether climbed to a high of $2,077 at around 11 a.m. ET. It first broke the $2,000 threshold around 9:50 am ET Friday. The digital asset for the ethereum network has gained 177% in 2021 alone and 1,370% in the past 12 months.

“It’s very positive to see [ether] rally along with [bitcoin] which has been the de facto flag bearer for crypto assets,” Jeffrey Wang, Head of America’s at Amber Group, told Insider. “The main takeaway for me is that the increased capital flows into crypto is now making its way into more than just [bitcoin].”

Wang also said investor diversification bodes well for the whole cryptocurrency space, which has seen a broader rally in recent weeks, boosted by the economic recovery from the pandemic-led recession and the third round of stimulus checks under the Biden administration.

Bitcoin this week has flirted with the $60,000-level on renewed institutional backing from PayPal, Visa, and CME Group.

“[Bitcoin] is a benchmark for investors’ confidence in store of value, while interest in assets like [ether] that focus on the programmable, smart contract side of the ecosystem show investors optimism for the utility and potential of decentralized finance,” John Wu, President at Ava Labs, the team behind Avalanche, told Insider. “Ethereum breaking past this threshold may result in a paradigm shift that will benefit the two to three smart contract networks gaining real traction with decentralized finance.”

Sergey Nazarov, co-founder of Chainlink lab,a decentralized oracle network, also attributed ether’s rally to the rise of decentralized finance, or DeFi, an umbrella term for various applications that use public blockchains and crypto assets to disrupt the traditional financial sectors.

“Ethereum users are now relying on DeFi applications in order to lend, borrow, earn yield, create derivatives, options, and even trade, all without the reliance of any centralized third party like a bank or a fintech like Robinhood,” Nazarov told Insider, adding that this new sector, worth over $45 billion, is the fastest growing in the cryptocurrency industry.

“I would expect to see more users utilize DeFi on Ethereum as they hunt for yield that ranges in the double digits,” Nazarov said. “I wouldn’t be surprised if the total value locked into DeFi apps on ethereum surges past hundreds of billions of dollars.”

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Ethereum developers say an upgrade that will destroy coins is very popular with users after tensions with miners rise

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The cryptocurrency ether runs on the Ethereum network.

  • Ethereum developers have defended the changes to the network that will come in the summer.
  • They said the alterations are very popular with users, as they make fees simpler and limit ether supply.
  • But miners remain disgruntled that their fees will be cut, with debate in the community ongoing.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Developers on the Ethereum network have defended major changes that are set for the summer that will destroy ether tokens and cut the fees paid to miners, saying they’re popular with users and could boost the cryptocurrency’s price.

The planned alteration to the network, known in crypto jargon as EIP-1559, “is very popular among Ethereum users as it potentially makes Ethereum a deflationary asset,” Ben Edgington, a developer at ConsenSys, a company closely involved in the network, said on Tuesday.

Ethereum developers approved significant changes to the network that runs the ether cryptocurrency earlier in March. They are set to overhaul the current system under which users send tokens to miners to pay for transactions to be completed in a kind of auction process.

The changes have sparked anger among miners, however, as they would reduce the fees they receive. Some have even proposed a form of strike.

Yet developers say users support the changes, partly because the reduction in coins could lead to the price of ether rising sharply. Ether traded at around $1,800 on Wednesday. The token has gained around 145% so far this year.

Dan Finlay, lead developer on popular Ethereum wallet MetaMask, said: “Its purpose is to provide a more predictable transaction pricing system that reduces overpayment, and has some deflationary economics as a side benefit.”

Under the changes, which will likely come into force in July, users will send a base transaction fee to the network that would then destroy or “burn” ether tokens, thereby reducing the number of coins in circulation.

It will move the system away from the current mechanism, in which users have to bid to have their transactions included in blocks by miners, which can make fees very costly at times.

Edgington said these issues are “a significant problem for the usability of Ethereum and a barrier to the broader adoption of Ethereum by non-specialists.”

Lex Sokolin, co-head of fintech at ConsenSys, said the changes will take the network fees “from having an unpredictable and unbounded pricing mechanism to something that is much more predictable.”

The anonymous founder of Pylon, a major North American ether miner, said there was a lot of “turmoil” in the Ethereum world. They said miners had spent time and money building facilities, and now could be faced with heavy losses due to the changes.

“It goes back to the point [that] developers don’t mine, so they could care less about a miner, and miners don’t develop, so they could care less about reducing the congestion,” they said.

Some ether miners threatened to effectively go on strike, or try to disrupt the system in other ways in protest at the changes.

But there are signs of peace breaking out, with miners proposing their own EIP – which stands for Ethereum improvement proposal – that would raise their rewards and gradually lower them.

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Bitcoin plunges 18% as investors grow wary of record-breaking rally

bitcoin

Bitcoin plunged as much as 18%, to $45,000, on Tuesday before slightly paring some losses as sky-high cryptocurrency valuations unnerved investors.

The cryptocurrency traded 13% lower, at $47,608.24, as of 11:45 p.m. in New York.

Bitcoin has soared in 2021, with the price more than doubling this year to reach a record $58,350.41. Increased interest from big companies such as Tesla, as well as record amounts of stimulus, have powered the rally.

Yet investors appeared to second-guess the record-breaking run on Monday, with bitcoin plunging from close to $58,000 to below $47,000 before recovering somewhat.

The fall coincided with a sharp drop in technology stocks that saw the US’s Nasdaq index slide 2.46%, suggesting investors were becoming wary of the more expensive parts of the market. Both bitcoin and tech stocks slid again on Tuesday.

Expectations of stronger growth and inflation have boosted bond yields and made the more risky areas of the market look less attractive.

Elon Musk’s comments over the weekend that bitcoin and rival token ether “seem high” appeared to trigger the latest move lower. The Tesla boss has played a large part in the cryptocurrency rally, and his words carry weight among many bitcoin enthusiasts.

Craig Erlam, senior market analyst at currency firm Oanda, said: “The fall that has taken place since shows just how wild an instrument it is, how overbought it had become and how influential the Tesla CEO now is in the space.”

Treasury Secretary Janet Yellen also added to the wariness around cryptocurrencies, telling CNBC on Monday that bitcoin is “an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”

“I don’t think that bitcoin… is widely used as a transaction mechanism,” she said. “To the extent it is used, I fear it’s often for illicit finance.”

The ether (ETH) price also tumbled on Tuesday, with the Ethereum network’s currency down around 8.9% to $1,557. XRP was down around 15% while Binance’s coin was roughly 13% lower.

Pankaj Balani, chief executive of crypto derivatives exchange Delta, said the downward correction in bitcoin and other currencies had been coming.

“Some leverage has been cleared but the volatility should persist for a few sessions followed by a consolidation in BTC and ETH prices before the next move up.”

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