Ethereum price at $1.4K was a bargain, and a rally toward $2K looks like the next step
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Ether’s price (
Ether’s deflationary mechanism is in full force
On November 10, 2021, the price of Ether was $4,869, a record high for the cryptocurrency. However, a great deal has changed since then, including the burning of 3,016,607 ETH via the EIP-1559 Improvement Proposal. This equates to an additional $5.4 billion in capitalization that would have otherwise been created, thereby adding to the supply side and restraining price appreciation.
Currently, the market leader Bitcoin (BTC), is trading down 59% from its $69,000 all-time high. That does not necessarily mean Ether should reduce the gap versus Bitcoin, but it shows how discounted ETH currently stands at $1,780. The deflationary standard paves the way for Ether’s perception as a scarce digital asset, which is particularly promising during inflationary periods in the global economy.
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