Ethereum rose to $1,295 today with it almost fully recovering after twice testing support at $900.
The crypto has gained significantly on bitcoin, up nearly 7% while bitcoin has increased by only 1%.
The currency became very bullish today with it suddenly jumping as it can be seen in that big green candle.
The reason may well be some bullishness in defi is now reflecting on eth with the entire decentralized financial system running on ethereum.
The amount locked up in staking is now also becoming considerable at more than $3 billion, with this supply effectively taken out of circulation for two years.
This 2.5 million eth therefore can not participate in supplying the asset for price setting, with it increasing by another 25,000 eth, worth $36 million, since Thursday.
Another reason may well be that EIP 1559 is now in the picture. While it previously seemed like this was work in development, the fee market Ethereum Improvement Proposal is actually pretty much finished.
It may go out by summer, with its deployment reducing eth’s total supply due to burning fees.
It has significant backing by the defi ecosystem as it considerably increases usability by making network fees predictable.
Miners naturally are opposed to it but this was proposed by Vitalik Buterin, ethereum’s cofounder, so once the technical aspects are sorted out, it should be deployed without any real problems at a technical level.
The proposal also effectively doubles capacity, making it a significant upgrade of eth before it goes full Proof of Stake.
The world computer therefore has plenty going for it, but whether it can pass that $1,300 and the big resistance at $1,420, remains to be seen.
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