In the month of December, the price of Ethereum has raised by 80% against the United States dollar. Within a span of 30 days, the price of Ethereum has surged from $83 to $150.
On January 2, Ethereum, with 7% increase in price, surpassed Ripple (XRP) and has become the second most valuable digital currency in the crypto market.
Ethereum Graph in the Last 30 days
As per the market analyst and crypto experts, there are two reasons for Ethereum prices surge in the last 30 days: Oversold Conditions and Upcoming Constantinople Fork.
Ethereum, in a time period of November and mid-December, has seen a sudden decline in the price values. The price of Ethereum in this period fell from $220 to $83. The crypto experts believe that despite the surge in December, Ethereum still has to achieve the levels of November, which would aid the growth by additional 46, and the prices will ultimately rise back to $220.
As per the market analyses, the market demonstrated oversold conditions following the declination of Ethereum price (from November to December) resulted in relieving the sell-pressure on Ethereum – that allowed the cryptocurrency to recover.
Alex Kruger, an economist, and a crypto trader believe that Constantinople – the upcoming fork of Etheruem might increase the demand of the crypto asset in future. The block rewards of Ethereum might also get reduced with the fork. This reduction can restrict the amount which Ethereum miners can generate. Chances are, in the long term it can decline the circulating supply of Ethereum. Therefore, if the supply of the crypto asset decreases in future and the demand increases or remains the same, then the price of Ethereum is expected to surge.
Alex, in his tweet, quoted:
On the long run, this is decidedly bullish. https://t.co/4bbgAHMz7Z
— Alex Krüger (@krugermacro) December 24, 2018
Last week, on Christmas Day, Alex said:
“Ethereum’s Constantinople fork is coming on block 7080000, around January 16, 2019. Constantinople will reduce the block rewards from 3 to 2, decreasing new ETH supply accordingly. On the long run, this is decidedly bullish.”