Ethereum Crypto Gains Over 48% In The Last 7 Days: Here's Why

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oi-Roshni Agarwal

| Updated: Wednesday, July 20, 2022, 11:38 [IST]

Ethereum crypto token in a bullish crypto environment has made a stellar run on a weekly basis. The digital token i.e. the second largest by m-cap gained almost over 48% in 7 days as per data.

As a whole, the crypto market is in bullish mood with all the top cryptos in the green and Bitcoin also gaining by a good over 6% as of writing this copy at 11:10 am IST at $23,491.

Why Ethereum outperformed and other cryptos over a 1-week period?

The crypto token which had been lamenting for the past several months is seen showing a recovery. Last quoting with gains of over 2% at $1572, the crypto rallied to as high as $1610 in the last 24 hours.

Now as per analysts which told a leading global publication, the reason for the spurt in the token is likely on account of the two ‘certainities’. The first one being the recently confirmed date pertaining to the Ethereum ‘merge’ upgrade’ that will make the token far more energy-efficient. Furthermore, the next key reason is the ‘calming’ of macroeconomic fear as provided by ouwei Yang, financial analytics director at StoneX.

The view that the US Fed shall go on an even bigger rate hike spree considering the red-hot inflation has now subsidied. Further there are views that the Fed shall be forced to draw to a rate cut earlier than expected in order to prevent prolonged recession in the world’s most developed economy.

“Actually if you see the price movement tick by tick, this time it’s more like ETH leading BTC [or Bitcoin] instead of the other way around in usual times, so it’s a strong indication of ETH-led bear market rally with the confirmation and sentiment of ETH2.0,” said Yang, referring to post-merge Ethereum.

Moreover with the ‘merge’ mechanism the Ethereum token shall move from proof of work to proof of stake. Thus the environmental impact from the crypto shall reduce drastically and hence there is renewed optimism for the token that is reflecting in its price surge.

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