Ethereum (ETH) Bounces Above $3000 Once Again Outperforming Bitcoin on Weekly Chart

The world’s second-largest cryptocurrency Ethereum (ETH) is once again showing strength over its biggest competitor Bitcoin. The ETH price has surged 6% as of press time crossing the crucial resistance of $3,000 levels.

Even Bitcoin (BTC) has registered a 3.5% jump with its price moving past $42,200. On the weekly chart, Ethereum is up nearly 20% which is 2x against Bitcon’s gains of 9%. Clearly, ETH has been leading the show over BTC.

The recent price rally for Ethereum (ETH) comes on the backdrop of a strong fundamental buildup taking place. Over the last week, exchanges witnessed some staggering ETH outflows. These outflows were to the tune of nearly 200K ETH withdrawn from centralized exchanges in a single day.

Also, as we reported, the Ethereum whale transactions have shot up significantly after a short hiatus. Besides, the number of $100K+ transactions on the Ethereum network has been on the rise.

Ethereum 2.0 The Merge Happening Soon

The Merge between the Ethereum “execution” layer and the “consensus” layer has been the topic of most discussion with some key developments recently. The Merge was recently successful on the Kiln testnet.

The Ethereum 2.0 launch is the most-awaited event in the crypto space. Moving to the Proof-of-Stake (PoS) ecosystem will reduce the Ethereum network’s energy usage by a staggering 99.5% making it more environmentally friendly. Furthermore, it will drastically improve the Ethereum network scalability for DeFi apps while simultaneously reducing the transaction costs.

Speaking last week at Camp Ethereal, Ethereum co-founder and ConsenSys CEO Joe Lubi said:

“Another exciting thing about moving to proof-of-stake is that proof-of-work requires a lot of issuance of ether [the term used to describe Ethereum the cryptocurrency rather than the network] in order to incentivize these people with heavy infrastructure, to lend their resources and validate transactions on the network. So if you have very light infrastructure, then you can issue much less ether per block that’s constructed”.

Another big booster to the ETH price is that since the implementation of EIP-1559 last August, $6 billion worth of ETH has been burnt so far. A staggering 2 million ETH have been moved out of circulation creating deflationary pressure on the network.