Ethereum price rallies: Up by 8% after last week’s losses

Ethereum price saw a strong drop late last week, following Bitcoin’s example. BTC was the one who led the drop due to approaching options expiration date, and Ethereum simply followed due to strong correlation. However, as soon as the contracts had expired, a recovery took place, and Ethereum started to slowly grow over the weekend, only to see a more serious surge as the new week started.

Visa to settle USDC transactions via Ethereum blockchain

It is well-known how big of impact news can have in the crypto industry. Even small news, concerning one investor who lost their money, can have negative impacts, or one celebrity supporting the coin can turn things around in an extremely positive way.

So, when Visa announced that it will start USD Coin (USDC) transactions and that they will be settled via Ethereum, this was massive news for the project, as it once again indicated how mainstream financial firms are starting to adopt digital currencies.

Visa’s new pilot program came in partnership with Crypto.com, with the two planning to offer users the option to use USDC to settle transactions with partners. The coin should come into use later this year, and as a stablecoin, there is no danger that the coin will lose its value and damage users’ wealth.

Now, Visa also announced that the new plan will work on Ethereum’s network, which will eliminate the need to convert cryptos into fiat in order to settle transactions. While this is a huge thing for Visa, it is an even bigger one for Ethereum, as it granted it yet another major use case. It also made it more important than ever for Ethereum 2.0 to launch and start handling these transactions.

Speaking of Ethereum 2.0, Glassnode recently reported that Ethereum’s ETH 2.0 Deposit Contract just reached a new ATH regarding Total Value Locked, hitting over 3.6 million ETH. The contract, which barely attracted any attention in its first few days, skyrocketed to hold millions of coins, or more than $6.5 billion, according to the current price.

Ethereum surges 8% after the Visa news

Last week, as Bitcoin price went down due to the upcoming options expiration date, it took Ethereum — as well as the rest of the crypto market — with it. ETH crashed from $1,740 to its new bottom at $1,550. However, it started to recover immediately, growing steadily throughout the weekend. By Monday morning, the price was already at $1,700, and the coin quickly recovered the value it had lost during the crash.

In fact, in the last 24 hours alone, the coin surged by over 8%, reaching the price of $1,840 before correcting slightly to $1,787. It appears that it found a new support at around $1,800 that will allow Ethereum to gather up strength as the coin prepares to go back after the $2k resistance and try to breach it.

Whether or not it will be successful at it remains to be seen, but it is good to see that ETH outperformed Bitcoin on a daily and weekly basis alike.

Conclusion

Ethereum price has performed well over the last several days, recovering everything it lost, and gaining even more. Yesterday’s surge even brought a massive increase in volume, as people rushed to buy the coin, possibly encouraged by Visa’s announcement, or perhaps by the recovering price that may have caused triggers to go off and announce that the rally has started.