BTC is showing some positive traction. However, it is not the only token to do so. BTC has initiated a pan-industry surge that has affected all the major tokens. One such token is ETH. Due to recent market movement, ETH has shown signs of a bullish run.
In a recent move, ETH regained its momentum and increased its weekly income by one-third. This shows a significant uptrend and can help investors and traders earn big. However, analysts think there is more to it than meets the eye. Therefore, there is a sense of skepticism surrounding the token.
Historically, it has been noted that BTC and ETH share a close-knit relationship. In other words, price movement in one blockchain would eventually influence the other. Therefore, it is no surprise that the BTC surge has also influenced the ETH surge.
Is It Happening For Real?
At the time of writing, ETH’s total token supply is around 120.07 million, an all-time high for the token. However, this also suggests that there is a chance of a decline in the former deflationary supply, which can push the price down if things go bad.
While some suggest that this is a natural price action, others believe that it could be due to the Dencun upgrade for the blockchain. This upgrade lowered the token’s burn rate and transaction fee, creating inflationary pressure.
Moreover, it was noticed that the token is suffering from severe institutional decline due to recent price action. Therefore, there is a high chance that the current wave of success is just another phase that can soon pass.
