With an Ethereum price in excess of $ 450, a large buyer’s wall has appeared on the major cryptocurrency exchange Bitfinex. ETH earned $ 270 shortly thereafter, a 19-month high over Bitcoin (BTC).
ETH has maintained a strong bullish momentum over the past two months, which has led to an increase in user activity on Ethereum.
Etherscan data shows that daily transaction volume on Ethereum has increased from approximately 420,000 in January to over 1.2 million daily transactions in August.
Why is ETH growing and the demand for Ethereum is constantly growing
The huge demand for Uniswap tokens and micro-decentralized finance (DeFi) has created a steady demand for ETH. On the Ethereum blockchain, users must use ETH to cover transaction fees, also called “gas”.
The cost of gasoline as a result of the increase in daily transactions has prompted users to buy ETH to pay for online expenses. Since the beginning of June, when the DeFi market began to explode, the demand for ETH purchases has increased.
According to data from Glassnode for analyzing the market in this chain, gas costs are growing very quickly, which leads to an increase in mining revenues. The researchers wrote:
Ethereum miners have earned over $ 500,000 in transaction fees in the last hour. This is a new hourly record (other transaction fees were excluded earlier this year).
The ongoing trend is unlikely to reverse in the short term as solutions for scaling Layer 2 and ETH 2.0 are still far away.
However, the DeFi market is constantly expanding, bringing more users to decentralized platforms like Uniswap. It remains to be seen if this will lead to an increase in demand for buying ETH in September.
When demand is discovered, it seems like whales or wealthy miners are buying ETH. Bitfinex technical manager Paolo Arduino said:
“Someone really wants to buy ETH on the Bitfinex 7k screen wall.”
Bitfinex has been recognized as one of the few victims used by many whales, along with Gemini and Bitstamp. 7,000 ETH to $ 458 is equivalent to $ 3.2 million, which is a large one-time purchase on the exchange.
What do traders say about the short-term trend?
In the short term, traders are generally bullish on Bitcoin and Ether prices. Both major cryptocurrencies saw their monthly light at their highest levels in several years.
Michael Van de Pope, a resident trader at the Amsterdam Stock Exchange, said a small consolidation was likely to occur. After that, Van de Poppe proposed a new $ 12,400 bitcoin bet with ETH leading the way. He said:
It reached the $ 12,000 range I indicated after the fall. Here you will see consolidation above $ 11,600. If that happens, we will likely see near $ 12,400 rallies and new highs. $ ETH is already planning a way. “