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Tips for Speculating Easily on the Prices of Ethereum

The CFDs offered by brokerages, including forex and commodities, are open only to high-net-worth individuals and institutions, who are invited to invest via a particular program . If you are interested to know more about Ethereum, check out how Ethereum can overtake Bitcoin.

As a result, the price of an asset is not included in the trading volume and lacks transparency. On the other hand, the trading volume of bitcoin involves hundreds of millions of dollars daily.  Due to this unique value proposition, ether prices skyrocketed in the past year. 

In fact, since 2016, ether’s price has increased by at least 1,000%, even though it is still relatively cheap compared to bitcoin. Ethereum’s latest market cap is now nearly $400 billion, and its price has reached as high as $5k apiece per token. So far, in 2022, there are two major catalysts for the continued rally of Ethereum: Developments around scaling solutions and new blockchain projects that use ether tokens in their token launch events (ICO). But first, let’s discuss some tips for speculating ethereum price. 

Learn what moves Ethereum’s price:

It is widely accepted that a prominent and constant source of demand for ether is investors. According to Coinmarketcap, since the beginning of 2017, there have been at least 600 million ether transactions and reportedly a growth in average daily transaction values of 39%. Ether’s price volatility is a plus since it means the market believes there is strong demand for a specific coin, and investors’ confidence can allow prices to rise. That’s why we have seen explosive price increases over the past year.

Ether also appreciates because it trades on currency exchanges (trading pairs with other major digital currencies, such as BTC and USD). So when investors’ demand for ether rises in Asia and Europe, there will be more trading volume for ETH (people will use it for margin trading and payments). Also, when investors buy ether to finance ICOs, they are willing to pay more because they take more significant risks.

Analyze market trends:

Investors should pay attention to recent news about Ethereum, as it may be a significant source of demand for ether tokens. Thus if there is positive news about Ethereum, such as several financial institutions partnering with the Enterprise Ethereum Alliance and announcing more scaling solutions, demand for ether will likely increase.

Investors should also study any movements in bitcoin by analyzing market trends to make informed decisions when deciding whether or not to buy or sell ether tokens. The correlation between the two most significant digital currencies is pretty high, so it would be wise to use this knowledge and take advantage of price volatility between these two cryptocurrencies. Investors should always consider the possibility of price manipulation by large holders (whales).

Always stay updated with the latest changes in the ethereum network:

Ethereum is an ever-evolving blockchain with plans for its Turing-complete programming languages. There are many projects building on Ethereum infrastructure, and this development will likely provide support for ether prices in the long term.

Ethereum has become a top digital currency and a significant catalyst in increasing cryptocurrency prices since 2018. The developments around scaling solutions and new blockchain projects using ether tokens are responsible for pushing the price of ETH to record highs over the past year. However, there are always some technical glitches in the ethereum network, and these changes lead to a downside to the store value of ethereum, so it is always good to be updated with the latest news and events in the protocol of the ethereum network. 

Learn to read charts and patterns:

There are a variety of charts out there that can provide insight into the price movements of ether tokens. The main takeaway for investors is that ETH price has been showing exponential growth trends, so people should start learning to read charts and patterns and at least understand general market sentiments when buying and selling ether tokens to avoid making costly mistakes. 

The price movement mechanism of ether tokens is far more complex than that of many other digital currencies traded on a centralized exchange. As a result, ether moves in ways similar to bitcoin, but with some differences that make it unique from bitcoin per se.

Ether moves according to a specific pattern, with each wave representing a predetermined value point. Therefore, when you buy ether tokens, it’s essential to research all of the dAPPs built on the Ethereum blockchain, as they will likely positively impact ETH prices in the future. Hundreds of projects are building on Ethereum’s infrastructure, and this work could continue to support price appreciation in the future.

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