The price of Ethereum is rising and crossed the psychologically important level of $300 again today. That is big news. As expected, the number of bullish Ethereum price articles has gone wild in recent days, but, needless to say, the number of doomsday predictions about crypto bubbles as well.
It is, as an investor, sometimes hard to filter out those relevant news messages from irrelevant. That is why it is important to stay focused on the facts, not the news, nor the noise.
One very important indicator, in our view, which should be watched together with the price of Ethereum is the number of transactions on Ethereum blockchain. That is an indicator of real life demand for Ether.
As seen on the chart below the number of transactions has risen in recent days (past few weeks mainly). That is a GREAT sign as it fully supports rising Ethereum prices.
What we are saying is that the rising price of Ethereum gets confirmed by a rise in usage of Ether in the real world. And that is, according to us, a mandatory confirmation about Ether’s intrinsic value which is reflected in the price rise.
The usage of Ether, reflected in below transaction chart, goes from purchase of Ether by investors, ICOs to simply payments. As the public only now starts to understand what cryptocurrencies are, in particular Ethereum, which is what Forbes writes as well, it suggests the bull market only got started.
Smart investors keep a close eye on the correlation between transactions and Ethereum’s price.