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Updated May 3rd, 2021 at 12:03 IST

Why is Ethereum going up? ETH reaches a record all-time high price on May 3

Why is Ethereum going up? Ethereum is a popular cryptocurrency that has been steadily seeing a rise in price and reached a new record price on May 3.

Reported by: Sakshat Kolhatkar
why is ethereum going up
Image Source: Ethereum Website | Image:self
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Cryptocurrencies have become massively popular over the past couple of years. Every few days news comes out about different crypto coins as their prices skyrocket. Cryptocurrencies have become a very popular investment and trading tool, especially among the younger generation. All across the world, people are choosing to invest their money into crypto, as cryptocurrencies have given unimaginably high returns over the past few years. Now, the second most popular cryptocurrency by market cap Ethereum has reached a new all-time high price and continues climbing.  

Why is Ethereum Going Up?

The Ether cryptocurrency ETH broke past a new record to set an all-time high. This is the first time Ethereum has crossed the $3000 dollar mark in the history of the coin. At the time of writing this article, the Ethereum price stands at $3,110. As per the WazirX, the price of Ethereum rose up about 7 per cent from a 24-hour low price of $2847 to an all-time high price of $3110 time. Many crypto experts on Reddit believe that Ethereum is going to continue rising. 

As per an article by Yahoo News, there are many reasons behind the price rise of Ethereum. For one, the price of Ethereum and most major cryptocurrencies in the market follow the price of Bitcoin as it moves up and down. Over the past year, Bitcoin has seen significant gains while Ethereum lagged behind in comparison. Crypto experts believe this ETH rally is just ETH catching up with the gains of Bitcoin. Additionally, Ethereum has been adding many updates to its software and has plans to introduce ETH 2.0, which will make transactions faster, fees lower, etc.

Will Ethereum Crash? 

Ethereum was launched in 2016 by Russian Vitalik Buterin, who was 19 years old at the time. Ethereum is a smart contract network with the ability to host and support decentralised applications. It is an open-source and decentralised platform that hundreds of cryptocurrencies use as their basis. Many people on crypto forums and Reddit believe that as ETH 2.0 comes this year; the price of Ethereum will continue climbing. Unlike Bitcoin, which serves no purpose other than acting as a store of value, Ethereum is used by a lot of other crypto projects as the basis for their coins. So, experts believe it's highly unlikely that Etherum is going to crash in the future. However, in case the US Govt makes a policy banning cryptos or the whole crypto market falls, there is a chance that Ethereum might crash. However, this is not financial advice and people should do their own research before investing, as crypto markets can be very volatile. 

Image Source: Ethereum Website

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Published May 3rd, 2021 at 12:03 IST

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