Leading cryptocurrency Bitcoin (BTC), It was dyed red after last week quite positively. BTC price has dropped 6.2% in the last 7 days, while the decline in the last 24 hours has even exceeded 5%. As of the time of writing this article, BTC, which pulled its 1-day drop to 3.7% and recovered, caused the altcoins to crash harder.
Bitcoin Price Under Resistance
This decrease in the bitcoin price can be a completely cyclical movement. BTC, which has been falling in recent months, especially on weekends and Mondays, tested the $ 60,000 resistance and repeated this cycle by returning.
When looking at the trend in the Top 10, especially ADA and DOT prices decreased by 5% and above. Despite this, it can be said that the price of Ethereum (ETH), the second largest cryptocurrency by total market cap, which is seen as the competitor of ADA and DOT, is relatively close.
Ethereum price has experienced nearly twice that in previous BTC drops. There may be three main reasons why the ETH price is now holding.
3 Developments Supporting the ETH Price
The most important of these reasons is the steps taken by the developers for the EIP-1559. EIP-1559 has been officially adopted and this development, which will result in a significant reduction in transaction fees, will be implemented in July 2021. With the EIP-1559, although miners’ income will decrease by up to 50%, the transaction fee issue will be resolved.
The second positive reason is seen as the decline of ETH reserves in stock exchanges to an all-time low. The sending of ETHs from exchanges to wallets means that the selling pressure is reduced. In addition, the record-breaking amount of ETH invested in the ETH 2.0 contract also shows that trust in the network has increased.
The third reason is known as the institutional investor increasing their ETH purchases. Grayscale has purchased more ETH than Bitcoin purchases in the last 1 month. In addition, in the latest report published by CoinShares, it was emphasized that ETH was the second most popular crypto currency in the first quarter of 2021.