If you keep up with the crypto market, you likely know that Ethereum price has outperformed Bitcoin. But you are sitting there wondering, “How did it happen?” To be fair, having such confusion makes total sense.
Since several factors influence the Ethereum chart price, you have to know which factors they are. Is it a sudden lot of investment? Does it have to do with the decentralized unit that controls crypto trading? The list is long.
We understand your confusion, so let us clarify some factors that influence Ethereum’s pricing in the market.
1. The supply and demand of the crypto in question
Ethereum price is influenced by the supply-demand ratio in the market. To explain in simpler words, when more traders sell off Ethereum and its demand subsides, so does the price. Subsequently, when more people are trying to buy this crypto, the price skyrockets. The explanation is simple and to the point. Also, when there is a short supply of ETH but with heavy demand, the prices shoot up.
2. Following the market trends
If you are following the Ethereum chart, pay attention to the market trends. Believe it or not, it influences the overall price of the crypto. The global market capitalization and state of the crypto market influence the pricing too. Ethereum’s ability to support smart contracts and decentralized applications (DApps) also contributes to the shift in pricing. So, when indulging in crypto futures trading, this is a factor you have to prioritize.
3. Collaboration and use cases
Be it bitcoin futures or Ethereum futures, collaborations and use cases influence the price. With how use cases like NFTs have taken precedence, similar market trends determine the pricing. You might not realize this but Ethereum blockchain use cases make a huge impact on the prices and the associated fluctuations to them. So, choosing a relevant crypto trading platform is fundamental.
4. Celebrity support and media coverage
This might come off as a surprise but bitcoin trading and ETH pricing heavily rely on the entertainment industry. Positive media coverage brings in a series of interested investors, spiking the price up. The rise in social media influence has also contributed to a shift in people’s minds. When people find their favorite celebrities promoting a product, it becomes a habit to follow the same path. This increases the demand and the price too.
5. Regulatory environment
Believe it or not, the regulatory landscape plays a crucial role in the Ethereum prices. Sometimes, clarity or legal status behind ETH can push people to sell the crypto in hand, leading to a sudden drop in the price. However, a positive regulatory environment contributes to significant growth in the price as well. It is all about striking a balance
If you want to make the most out of your ETH trading, relying on platforms like BTCC is key. Also, pay attention to the factors we have mentioned. Above all, stay informed about ETH and the crypto market at the moment of your purchase. Sometimes, staying informed helps tackle the volatility of the market a lot better.