The average returns posted by BTCUSD over the past one month is +8.6%. Ethereum posted gains of more than 13% during the same time. ETH is witnessing a lot of price action lately.
ETH ended the month of May, forming a high of $247.33. It is the highest gains posted by ETH this year. The debate between the BTC and ETH on which is the crypto for the future just turned more intense.
Is it noise for Ethereum, or do fundamentals back it?
Several analysts hold the view that Ethereum might be rising because of a herd-mentality. Nobody wants to miss out on the bus to quick profits. And that it is the reason, more and more investors and swing traders are buying ETH now.
However, another section firmly believes in the capability of ETH. They feel that the technology behind Ethereum is more reliable, and thus it is deemed to be the better cryptocurrency.
Moreover, the co-founder of Ethereum announced that they might come out with Ethereum 2.0 by June 9. This new version is supposed to carve a unique niche in the cryptocurrency space.
Here is the ETHUSD hourly chart. Source: TradingView.com
Ethereum 2.0: The hype that is driving ETH to the moon?
A lot of people feel that ETH 2.0 might not be the deal that it promises. Moreover, it was supposed to come out last year. It failed to do so. And people suspect that with the COVID-19 crisis this time, another delay might be more likely to occur.
Even if ETH 2.0 comes out as planned, nobody knows what it might or might not achieve. Therefore a lot of it is imagination. And when such hype is driven so much by mere speculation, we often witness a massive decline!