Ether Price Upcoming $4,000 as Upgrade Soon, NFT Momentum Gathers Pace

Ether briefly rose above $4,000 on Friday amid a month-long rise around a major update, and as demand for non-fungible tokens continues to increase.

The second-largest cryptocurrency rose to $4,027 on Friday, before reducing earnings. The price was $3,914 at 12:06 pm on Saturday in Hong Kong, trading at levels only previously achieved in May. Ether has gained more than 50 percent since the end of July, with the upgrade of the Ethereum network in London early last month, curbing supply increases.

On September 4th (11:47 am IST), the price of Ether in India was at Rs. 3,00,793 lakhs.

“Since the EIP-1559 update a month ago, more than $180,000 ETH (equal to over $700 million at current market prices) has been burned, resulting in continued disinflationary pressure on Ethereum supply,” wrote the Ethereum team. Fundstrat encryption in a Friday note.

Ether has also done well amid continued interest in decentralized finance or DeFi, and NFTs – many of which use the Ethereum network. NFTs in particular have increased, with sales in the large OpenSea market growing more than 10-fold in August from the previous month.

Several cryptocurrencies have performed well. Solana – now the seventh-largest cryptocurrency – has risen 68 percent in the past seven days and Polkadot has risen 27 percent, according to Coingecko.com. The overall cryptographic market capitalization is $2.36 trillion, after hitting a low of $1.24 trillion on July 20, CoinGecko data shows.

“The break in Ethereum continued overnight, at levels last seen in May this year, and spread into Cardano, Ripple and Polkadot,” said Martha Reyes-Hulme, head of research at digital asset brokerage and exchange Bequant, on a Friday note.

Bitcoin has not seen the gains of its smaller competitors, although it has counted on its own success recently by breaking out of $50,000 again on Thursday. It has remained close to the level ever since, after spending more than a week sitting just below the round number key level.

“Hold $50,000 and hope Bitcoin gets another leg up to $60,000 and test April’s highs,” said Antoni Trenchev, co-founder of the cryptocurrency Nexo. But Bitcoin “needs to start closing above $50,000 and closing in the early 1950s to allay concerns that it’s a double top and that we’re dropping to $30,000 again,” he said.

© 2021 Bloomberg LP


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