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Ethereum Secures a Good Start in October Brushing Off September’s Dip– Ethereum Weekly

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Ethereum endured tough trading sessions last month, losing almost 15%, but the token appears to be changing its course. Its trading activity over the first three days of October has shown the token is ready to shrug off the setbacks from its second-worst month for the cryptocurrency in the last twelve months. The token has posted a series of 7-day highs in the last few hours but the test will be breaking above $3,600.

Concerns growing among Ethereum investors

Ether had a mixed performance in September – a month in which the cryptocurrency niche suffered several blows. Market-wide and niche specific corrections saw the token fail to touch the $4,000 even after having a successful run in the first week of the month. The token sank below $2,700 a couple of times during the month but still managed to recover.

Experts have, however, warned that Ethereum is not as solid yet. Many in the ETH community will quickly dismiss the claim that the status of the token is coming under threat but a look at recent data suggests that the argument from experts is not far-fetched at all. While the poor performance in September can easily be justified by market forces, the same can’t be said for the split caused by Go Ethereum (Geth) nodes failing to upgrade.

The other concern lies within the blockchain, as users are still unsettled because of the high transaction fees and average network speeds. Ethereum rolled out the London upgrade that was meant to handle both issues, but the upgrade is yet to bring the desired impact in the blockchain. Not to forget, Ethereum’s losses are gains for its rival like Solana and Cardano that continue to become popular by the day.

CryptoCompare data points to a surge in institution’s interest in Ether

September’s CryptoCompare’s digital asset management review has suggested that institutional investors are shifting their interest from bitcoin investment products. The research detailed that bitcoin investment products hit their lowest share [this year] of total assets under management following a 7.8% decline in September.

Ethereum has stood out as the alternative that many are falling to, with data showing Ether-based products posted their highest market share of assets under management around the same period. In particular, Grayscale’s Ethereum Trust was the highest trading digital asset product in September and even outshone Grayscale Bitcoin Trust. The product’s average trading volume was almost 30% higher than in August at $250 million.

Polygon co-founder foresees Ethereum outpacing Bitcoin

In an interview with CoinTelegraph, Polygon co-founder Sandeep Nailwal projected that Ethereum will dethrone Bitcoin as the leading Layer 1 protocol soon. The co-founder backed his assertion by citing the fundamental differences that exist between the two. He also added that the flourishing DeFi sector, largely based on Ethereum, would provide a thrust for the token to eclipse the flagship cryptocurrency as the global standard.

The co-founder, who doubly serves as the COO, went on to explain that Bitcoin may not have a place in the digital assets niche in the next decade. He additionally set forth that the leading crypto might even lose relevance if it doesn’t extend its functionality beyond serving as a speculative asset and a payment method. Nailwal also acknowledged similar blockchains that are currently providing competition to Ethereum. He, however, held that no competitor blockchain could outdo Ethereum, which has maintained dominance so far and is only second to Bitcoin.

Ether market performance

Ether’s trading activity in September can best be described as rough but the native token on Ethereum seems to be rising in October. Earlier last week, there was fear and uncertainty among traders when the token sank below $3,000. However, its trading activity over the last few days, as per Coinmarketcap data, has eliminated doubts of another bearish wave below $2,700.

ETH/USD weekly chart

The token has performed well, alongside other leading crypto assets, since the month started. ETH/USD pair rallied briefly yesterday, touching a high of $3,484.61 and is currently trading at $3,360, down 1.85% in the last 24 hours. The token can break out and shoot for $4,000, but will first need a bullish impulse to overcome $3,600. Rejections at that level could send ETH/USD down, and in case of a bearish outcome, it will be crucial for traders to keep Ether above $3,000 to avoid erasing earlier gains.

The Blogger Scientist is a "Medical Physiologist" and a "Financial Asset" Content Creator who aims at enlightening web reader on varying Financial Assets such as Stocks, FX, Crypto, MLM,. HYIP among others.

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