Why Ethereum (ETH) Could Pump Higher Soon

By Bfab | Good vibes | 21 Jul 2022

The recent pump of ETH was mainly due to the Merge date announcement. The impact of the news is now fading, and there is even a risk that ETH gets back to lower values, since Tesla announced they sold 75% of their Bitcoin (BTC) holdings. However, some new announcements could pump ETH higher.

Why ETH could pump higher soon

Polygon (MATIC) recently announced they will deploy a ZK (Zero Knowledge) EVM roll-up by 2023. That's why MATIC started to pump. However, this new chain will not use MATIC for the gas fees... It will use ETH. Furthermore, zkSync decided to do better than Polygon by announcing they will launch their own ZK EVM roll up in the next 100 days, i.e., by the end of October... Even if they announce a token airdrop, the gas fees will still have to be paid with ETH, and all the aggregated transactions on roll ups will need to be validated on Ethereum mainnet... Therefore, at the end of the day, ETH will benefit from this ZK war.

Note: in the short term, it might be worth waiting a bit before taking positions since BTC price may continue to plummet for a few days further to Tesla announcement.

Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.

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