Among the most important cryptocurrencies on the markets, ETH is leading the week with a new all-time high, while DOGE surprises its investors again by climbing to a new position and BTC is fighting for the $60.000 level.
May started as an important month for the industry of cryptocurrencies, . In just 5 days, ETH, the native cryptocurrency of Ethereum, has grown by more than 25%, surpassing a value of $3.520 per unit. The current Ethereum bullish rally, which began in the last week of April, leads analysts to consider an ether above $5.000, before the correction begins.
Source: Coin Gecko
ETH's hot streak over the past few weeks shows that there is a lot of momentum behind this cryptocurrency. While Bitcoin (BTC), The world's largest cryptocurrency by market cap is struggling to regain the $60.000 level, and has plunged its investors into a rollercoaster of ups and downs. ETH has remained on the rise, sparking increased interest among investors.
For its part, DOGE, the meme cryptocurrency, surprised all its users and investors with a new jump of more than 150% in the last 7 days. The price of DOGE skyrocketed significantly after Elon Musk announced, on Twitter, his appearance on Saturday Night Live (SNL) as the “Dogefather” on May 8. In addition, the arrival of the meme cryptocurrency to two cryptocurrency exchanges was also a cause for celebration for its community, which began to raise its value in the markets. At the time of this note, DOGE is trading at a price of $0,68.
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Is ETH heading for $5.200 in the medium term?
Ethereum has been gaining ground in the markets and among investors, since the launch of several derivative products, such as CME Group futures; the approval of several ETH ETFs (exchange-traded funds) on major Canadian stock exchanges, which give investors greater exposure to the cryptocurrency's potential; and also due to new updates and the development that continues to grow in its community.
Expectations that Ethereum will soon become a blockchain Much more secure, scalable and interoperable, they are causing a positive effect among its investors and users, who had been affected by the high gas costs to transact on the network.
The data de The block indicate that the number of active Ethereum addresses grew by 26% in the last month, reaching a high of 678.200 active addresses. Likewise, the number of transactions carried out in the month of April was the highest in the entire history of the network, with 41,7 million transactions carried out. On-chain adjusted volume also hit all-time highs last month, with a total of 345.640 million.
These metrics show that interest in the second largest cryptocurrency on the market is growing significantly. The number of investors who are placing their trust in ether is increasing, and more and more people are trusting in the long-term potential that this blockchain network can offer. Ethereum offers much more scalability and has more potential use cases, thanks to the dApps, smart contracts, DeFi and NFT, than its main rival in the industry.
The optimistic atmosphere that exists in the Ethereum crypto community is leading several analysts to to consider that ether could soon reach a value between $5.000 and $5.200, before finding resistance.
«ETH’s next major resistance test currently lies at $5,240, while support lies around $2,811.»
DOGE climbs to fourth place among cryptocurrencies
DOGE's surge on the markets on Tuesday saw the meme cryptocurrency climb to fourth place among the industry's top cryptocurrencies. With a market capitalization of over $70.000 billion, Dogecoin displaced XRP Ripple, which had recovered after facing tough times due to the lawsuit filed by the SEC, the United States Securities and Exchange Commission, against the company Ripple Labs.
Source: Coin Market Cap
The adoption of DOGE as a means of payment is another factor that is driving its value in the markets. Recently, professional baseball team, the Oakland Athletics announced that it is selling double tickets for its games this week in Dogecoin.
DOGE hit a new all-time high at $0,68 per unit, showing a 6.000% growth so far this year.
Markets panic, BTC drops 8%
Major markets were thrown into a panic again following comments by Treasury Secretary Janet Yellen, who said interest rates could be raised to prevent the economy from collapsing.
According to statements Yellen told The Atlantic that the fiscal gap is costing the U.S. government about $7.000 billion in taxes, and the government is expected to take additional steps in the short to medium term. Yellen said that this staggering amount can help the government cover its expenses, and taking additional steps soon will prevent the fiscal gap from getting any bigger.
These assessments caused a fall in the markets. According to Markets Insider, technology stocks were the most affected and led the fall.
Last week, the price of Bitcoin began to fall due to fears of an increase in taxes for high-income individuals, so Yellen's statements, although she did not mention a specific percentage, may be causing new fear. In addition to this, analysts believe that the profitability offered by several altcoins, such as ETH, DOGE, LINK, ETC and BAT, may be attracting the attention of investors, leaving BTC in a secondary scenario momentarily.
Long-term prospects
Despite the correction that Bitcoin is currently experiencing, the long-term outlook for the queen of cryptocurrencies is highly positive.
Mark Cuban, who has slowly been seduced by the allure of Bitcoin and cryptocurrencies, recently placed a bet against Peter Mallouk, CEO of Creative Management, that BTC and ETH will perform much better than the S&P 500 in the next 10 years. The bet is made through a smart contract where each must deposit 1 million dollars in a stablecoin, and wait 10 years to see who comes out on top.
Finally, GlassNode analysts they point out The demand for Bitcoin and the number of users who “HODL” their cryptocurrencies are growing every day; therefore, the medium and long-term trend for this digital asset is pointing upwards, as the cryptocurrency becomes scarcer in the markets.
IMPORTANT: Bit2Me News reminds you that before making an investment you must educate yourself and know where you invest your money, as well as the pros and cons of the system. Everything written here is for informational and educational purposes and should not, under any circumstances, be taken as investment advice or recommendations. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
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