Ethereum news in spring 2020: what's happening to this booming crypto project today?
11:39, 13 March 2020
For as long as we can remember, Ethereum has been the second-largest cryptocurrency in terms of market cap. In terms of adoption, the coin has a massive following globally, thanks to its unique blockchain technology.
The Ethereum blockchain is used for several things, such as the creation of tokens, decentralised applications, development and execution of smart contracts, and more.
However, since Bitcoin gets most of the attention in the cryptocurrency space, most people wonder: “What is happening with ethereum?”
In this article, we address this question and get you up-to-date with the latest ethereum news.
Ethereum news in spring 2020 to consider before investing
Similar to the other leading cryptocurrencies, Ethereum has been having a very interesting 2020 so far. Here is some of the latest ETH news concerning adoption, project development, regulations, and more.
In the Ethereum latest news, we will first look at its adoption rate. While most investors and traders look at the prices of cryptocurrencies, adoption is what would drive digital coins in the long run. On the adoption front, ETH has been one of the leading cryptocurrencies in the world.
2019 was an excellent year for the project in terms of adoption. According to a report by Dapp.com, Ethereum recorded over 1.4 million active dApp (decentralised application) users. This number is substantially higher than the 800,000 recorded in 2018. Among these numbers, 1.28 million were new users while 137,000 were returning users.
This data is similar to what DappRadar reported, with the platform indicating that the daily users of Ethereum dApps grew by 118 per cent in 2019. The rise of DeFi has been key to the progress of Ethereum over the past year.
However, Ethereum could lose some of its users as the popular blockchain game CryptoKitties is planning to migrate to its own blockchain. CryptoKitties remains one of the most active dApps on the Ethereum network. Despite that, the Ethereum network continues to gain adoption, with ETH betting launched on the Cloudbet platform.
Ethereum developers have been working on the launch of Ethereum 2.0, with the network looking to migrate to the Proof of Stake protocol. According to Ethereum co-founder, Vitalik Buterin, the significant development to Ethereum.20 in 2020 would be the launch of Phase 0.
He revealed that the launch of Phase 0 would release the proof-of-stake network, which will come online this year. At the moment, the Ethereum network is undergoing a lot of optimisation with the Phase 0, and the developers would continue to refine it over the next few months. At the moment, more than 95 per cent of Ethereum developers are confident that Etheruem 2.0 will launch by this July.
The next ETH coin news update focuses on the regulatory efforts around the world. On the regulatory front, Ethereum is affected just like the majority of the other cryptocurrencies. In India, the ban on cryptocurrencies has been lifted by the Supreme Court, which means cryptos such as Ethereum, Bitcoin, and others are now available to millions of people in the country.
The regulatory efforts in the EU are also yielding positive news. According to Boerse Stuttgart's chief digital officer, Dr Ulli Spankowski, the new AML regulation in Europe has increased the institutional interest in cryptocurrencies. With more institutional investors in Europe venturing into the cryptocurrency space, we could see more financial products based on Ethereum, Bitcoin, and the others being rolled out in the coming months and years.
In the United States, the legislative is still battling to introduce a comprehensive cryptocurrency bill. Recently, Rep. Paul Gosar from Arizona submitted a proposal aimed at comprehensive reform of US cryptocurrency regulation. The bill called the “Crypto-currency Act of 2020” seeks to define the various categories of digital assets and clarify the federal agencies that will govern each aspect.
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Ethereum price news and analysis
Ethereum news in spring 2020 would not be complete until we discuss the ethereum price news. 2020 has been a great year for cryptocurrencies despite the recent decline in prices. Prior to this week, the ETH price was up by 32 per cent since the start of the year.
Ethereum started 2020 at $130 per coin but continued to surge as the general cryptocurrency market gained an upside momentum. However, its major price hike came towards the middle of February after it spiked to $279 per coin. Such a dramatic boost in value was due to the rising interest in the cryptocurrency space and Enjin launching its game development platform on the Ethereum network.
ETH was able to trade above the $250 mark till February 25 after Vitalik Buterin assured the cryptocurrency community that the launch of Phase 0 of Ethereum 2.0 is being worked on. However, Ethereum’s price started to decline as the effects of the coronavirus affected the global economy. The news that CryptoKitties is planning to leave the Ethereum network for its own blockchain has further affected the price of ETH over the past few days.
The Ethereum price drop below the $200 earlier this week came as the cryptocurrency market experienced a massive sell-off. The decline in oil prices and the ongoing Covid-19 outbreak affected the financial markets, including the crypto space. Some analysts believe that the pyramid scheme, PlusToken, selling 13,000 BTC earlier this week led to the massive drop in BTC price, which ultimately affected the prices of other cryptocurrencies.
In the past three sessions, ETH tumbled more than $100 and broke many important supports to start a strong downtrend. At the time of writing, March 13, the coin traded around $135.
Short-term Ethereum price forecast
ETH is trading below the $200 mark, and it is expected to decline further over the coming days. Most analysts believe that the bearish trend would continue and ETH's price would slip even more. Analyst Michael van de Poppe tweeted that while ETH price could surge to $212, it is more likely that it drops towards the $170-$180 mark.
Crypto trader @George1Trader also believes such a bearish scenario is possible. In his tweet, he stated that the ETH price could rise to the $220 region or drop further below the $200 mark. Analysts at Walletinvestor predict the ETH price to keep declining for the remainder of March. According to the analysts, Ethereum could be trading at $117 per coin by the end of the month.
However, most analysts believe that Ethereum would perform excellently in 2020. Earlier this year a famous crypto analyst, the Crypto Dog, tweeted that he considers ETH to be more bullish than BTC. Another cryptocurrency enthusiast, Antiprosynth, thinks there is a 50 per cent chance that Ethereum may overcome Bitcoin in some years.
While it is looking grim for ETH at the moment, the consensus by most analysts is that the cryptocurrency would record massive gains this year despite the coronavirus outbreak.
If you think you are not ready to make long-term investment commitments, but still want to try to profit from the coin’s volatility, you can do so through contracts for difference (CFD).
You can learn more about CFD trading with free online courses and find out how to trade Ethereum CFDs by reading our comprehensive guide. Always stay on top of the latest Ethereum news with Capital.com.