If #BTC is considered the leading and number 1 coin in the cryptocurrency market, right behind it is #ETH. Will this 2024 cryptocurrency market boom help ETH reach the $10,000 mark? Let's analyze ETH in the simplest way with Doto in this article.
Advantages of ETH over Bitcoin
Ethereum (ETH) is not just a cryptocurrency traded on an exchange, it is also a blockchain platform, similar to Bitcoin. These two projects share certain attributes such as decentralization, security, and transparency. Ethereum has a number of unique features, including smart contract technology - software that automatically executes digital contract terms without the need for an intermediary. This makes Ethereum a more flexible and efficient operating platform than Bitcoin. At the same time, Ethereum also has faster transaction speeds than Bitcoin thanks to its consensus algorithm, making it more suitable for mass applications.
Many users buy ETH tokens with expectations for Ethereum's future growth potential, because they believe that this platform can create many new applications and services.
An important point about Ethereum is the Network Effect, a big advantage when the more people join the network, the more the value of the token increases. Ethereum is the first and most popular blockchain for smart contracts, opening up many opportunities for new applications.
However, it is also important to understand the difference between the terms Ethereum and Ether (ETH). Ethereum refers to the network and blockchain, while Ether is the cryptocurrency of the Ethereum network. This leads to the development of the Ethereum platform, which will help the value of the ETH token increase.
Regarding the history of Ethereum, this network was introduced in 2013 by founder Vitalik Buterin. Then, in 2016, Ethereum underwent a hard fork and created two separate blockchains: Ethereum and Ethereum Classic. In the period from 2017 to early 2018, the price of ETH increased significantly thanks to the development of many projects on the Ethereum network, especially through initial coin offerings (ICOs). However, the era of ICOs is over and the market experienced a sharp bearish period in 2018. However, Ethereum maintained community interest and has returned to growth in time. recently.
Updates.
ETH has a clear update roadmap, the development of ETH is always focused on by the development team and Vitalik Buterin. Completely different from other non-Bitcoin cryptocurrency projects on the market that only focus on developing the initial project to gain a lot of profit, ETH's continuous updates bring many benefits to users. , thereby attracting more users and causing the price of ETH to increase.
A key part of Ethereum's growth is the transition to a Proof of Stake (PoS) consensus mechanism in 2022, which will save more energy and improve network performance. At the same time, decentralized finance technology (DeFi) on Ethereum is increasingly developing and becoming popular. These factors could lead to massive growth for Ethereum in the future.
Finally, it is Ethereum 2.0. With the transition to Proof of Stake consensus and improved scalability and safety of the platform, it marks a major step forward in the development of Ethereum and attracts the interest of long-term investors.
ETH ETF Fund
After the US Securities and Exchange Commission (SEC) approved a Bitcoin ETF, there is hope that the SEC will also approve an ETF for Ethereum. Many investment funds have applied for registration such as VanEck and Ark21Shares and are being considered. If the SEC approves an ETH ETF in the future, it could attract the interest of traditional financial users, while increasing the price of ETH and attracting institutional investors looking to diversify their portfolios. entry with this unique asset class. Dependence on BTC, the general flow of cryptocurrencies.
Ethereum, like the entire cryptocurrency market, generally follows the price of Bitcoin. During BTC dominance and growth, Ethereum will also follow that uptrend. Ether could also appreciate against the US dollar thanks to the general growth in the cryptocurrency market.
Technical analysis
The weekly chart shows selling pressure appearing at the resistance level of $4,160. ETH may turn around to retest the support zone at $2,600 in the near future to ensure further price increases. ETH will need to overcome two resistance levels at $4,160 and $4,900 to grow further. Conclusion
Ethereum has many positive factors such as advanced smart contract technology, fast transaction speeds, less dependence on Bitcoin, and support from institutional investors and investment funds. In the future, when the Ethereum network is complete and the use of cryptocurrency is popular, it is likely that users can use the Ethereum network for official transactions. However, this will require more money flowing into the cryptocurrency market as well as bringing real value to the Ethereum user community.
