Hello fellow Steemians

I am back with another hot topic today. If you have been keeping up with the cryptomarket as I assume would have since we all love this crypto space so much, then you must have seen the price of Ethereum skyrocket. Ethereum was at $ 88 on 14 May and in just month it has increased more than 4 times and now is hovering around $ 400 at the moment I am writing this blog. So what do you think the future holds for Ethereum?? Will there be a price correction? Or will it keep rallying to new horizons??
So let us see some of the points from which we can try to form an idea of some sort as to what is going to happen.

• The first and foremost thing to keep in mind is that we are in a massive hype cycle if you can call it that. There is a massive hype around the cryptos and this hype is bringing a lot of new people into the market who are putting their money into the currency which is ramping up the prices. The capitalization is unheard of at this moment in the crypto market and this hike in prices is creating more hype so its cycle and this is how Hype Bubbles are created. So there should be some sort of correction to these prices at some point and that is very difficult to predict as to when that is going to happen if at all. But I personally feel the winter is coming.

• Another point for the rally which we are seeing that is made by Ethereum is due to the its value propositions that seems sensible, so there are economic cases where people will always be interested in it. So basically what is mean is that Ethereum is rising because it has utility in the market space . But one thing that has to be kept in mind is that right now speculations are at such a huge level right now but things dont't go on increasing in an exponential way(unless it is the wait for the new season of GOT) without a correction.

• Also Ethereum is not like bitcoin in the sense that the supply of Ethereum is not limited. So as more number of people get into the marketplace and they buy more tokens so more tokens are supplied or created and the space gets flooded with more tokens and if the supply overcomes demand then the price will start to decrease. But at this moment the growth and demand for the tokens is so much higher than that can be supplied thus the increase in prices.

Ethereum's Unique Qualities

• There is a fundamental demand for Ethereum even as the prices of Bitcoin increases, this is because both Ethereum and Bitcoin serves different needs. Ethereum supports smart contracts, which has attracted significant interest among financial institutions and other companies.

• The Enterprise Ethereum Alliance formed to connect large enterprises to blockchain technology. The alliance includes Intel, JPMorgan, Microsoft, Toyota, Samsung, the Depository Trust & Clearing Corporation (DTCC), the San Francisco Stock Exchange and others.

• Ethereum has also attracted significant investor interest, based on the variety of currencies used to purchase Ethers. More than 83% of Ether buying was purchased using bitcoin a year ago, according to CryptoCompare. As of last week, bitcoin only accounted for 32% of the buying. Fiat currencies like the U.S. dollar and the Korean won have contributed a growing portion.

• Ethereum also made history recently by becoming the most secure public blockchain out of all in existence, overcoming bitcoin for the first time ever since its inception, as measured by what is called a Köppelmann Constant.

• Some countries appear to be using ETH as a hedge against national currencies. Switzerland, where the Ethereum Foundation is based, showed the strongest interest, followed by Venezuela, which is suffering triple-digit inflation.

• South Korea seems to have fallen in love with the currency. Its three largest exchanges handle twice the ETH/fiat volume of Coinbase’s GDAX and Kraken combined. South Korea is also big into fantasy sports, an area where ETH’s smart contracts can be used to make the game more transparent and reduce cheating.

• The government of Singapore recently conducted a test to digitize a national currency using the Ethereum blockchain.

Ethereum the Internet Sensation

• Ethereum’s transaction volumes reached 50% of bitcoin’s in late May for the first time, suggesting Ethereum is being widely used. Google searches for Ethereum reached an all-time high in early May.

Whats Next

• Nicola Duke, a Forex Analytix technical analyst said

Breaking through the $377 price point was key for Ethereum. Ethereum’s next challenge is to reach $467. Duke uses historical price data to determine future price movements.

So all in all Ethereum is pegged to rise even if there is a price correction, it will only be momentary and wont stop Ethereum from making it way through to $1000 mark.

References

• [Cryptocoinnews]
• [Ethereumprice.org]
• [Coincheck blog]
• [Coin Telegraph]

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