The ETH Bear Market
After peaking above $1,400 during the 2017 boom, Ether entered a very rough correction. The latter caused a drop in price of severe magnitude (-94%) bringing its price to a mere $83 in December 2018.
The correction was then followed by the short-lived 2019 rally that stopped at $360 for ETH before crashing back to the $80s on the Black Thursday crash (12 March 2020).
The $500 Mark
As a round number, $500 is often viewed as a “psychological” level. In fact, that price was not since on ETH since June 2018. For the first time since then, ETH was able to cross it and close a 4H candle above it.
Bear Market Work
Price action was undeniably in a sharp downtrend, however development on the Ethereum blockchain did not stop. The following data from Santiment, shows that development activity did not stop of decelerate during the bear market. While there’s still work to be done on the Ethereum network, namely implementing the Serenity upgrade, there was a lot built on top of it.
The most notable work is the rise of “Decentralised Finance” or DeFi. Protocols kept building throughout the bear market and created a decentralised ecosystem on top of Ethereum. Users are now able to trade ERC-20 tokens through DEXs like Uniswap or lend tokens and receive interest on them through other protocols like Aave.