The ethereum price has enjoyed a significant boost over the past few days, which allowed it to return above the $300 mark for the first time in over a month. On Wednesday the second largest cryptocurrency reached $314.75, its highest price level since June 29, when it was trading at $322.28. Over the past two weeks, the ethereum price has risen nearly 50 percent.
So what’s driving the increase? According to a report by CNBC, currently, ethereum trade is mostly driven by South Korea, with over 60 percent of buying happening in Korean won. South Korean lawmakers are looking to introduce regulations on ethereum and its larger rival bitcoin, which is bolstering investor sentiment.
The hype around initial coin offerings, which offer a way for ethereum-based blockchain startups to raise funding, has also contributed to the growing investor interest in the cryptocurrency. However, these digital token sales have also attracted criticism from some industry experts.
In another positive development for the cryptocoin, data from industry website Etherscan shows that the number of transactions in a single day using ethereum also hit a record high this week. This is another sign of the increasing traction the digital currency is getting.
And it seems that analysts expect further price gains for ethereum. CNBC cited online trading platform eToro, which on Wednesday suggested that there was a bullish sentiment among traders.
“Investors' attitude towards the coin over the coming hours and days will be a great case study. Some might want to realize profits shortly to avoid the losses they incurred during the last trading cycle, but looking at current trading sentiment on the eToro platform, the mood seems to be bullish," said eToro’s, UK managing director Iqbal Gandham, as quoted by the news outlet.
In today’s trading, the ethereum price stood at $298.84, as of 15:26 BST. The digital currency has fallen 1.6 percent over the past 24 hours, according to data from Coinmarketcap.