The Visa push on Ethereum could help reach one step closer to altcoin at this level

Ethereum is the second most popular cryptocurrency, with a market cap of US$197 billion, As a result, the Ethereum network grew in popularity among DeFi users, as the largest protocols were built on top of it. This piqued Visa's interest, and the company recently announced its support for Ethereum as a payment settlement method.

The move could pave the way for another rally in Ethereum (ETH), which is currently up nearly 30% in the monthly time frame based on data. Cuy Sheffield, Visa's VP, and Crypto Head announced the company's testing of large transactions using the Ethereumblockchain  at StarkWare 2023. VisaNet, the company's electronic payment network, is linked to SWIFT, or the Society of Worldwide Interbank Financial Telecommunication. As a result, the system is extremely efficient, with the network easily handling 1,500-2,000 transactions per second. However, its interconnection with SWIFT has limited the network's ability to operate at the desired frequency.

Sheffield stated at the event that the company is testing how to accept payments in the form of stablecoins on the Ethereum network, with USDC, the fifth largest cryptocurrency by market cap, as the stablecoin of choice. This combination of blockchain technology and traditional finance tools can help Visa realize its vision of a cashless society. As of this writing, the bullish news for Ethereum has not affected the market, with the prized altcoin continuing to ride the bearish wave. We can expect the coin to perform worse in the short to medium term due to its high correlation with Bitcoin and the current pain the top crypto is experiencing.

The current bearishness in Ethereum may lead to the bears testing the current support at US$1,593, a critical support that, if broken, could lead to more long-term pain. Even though many consider the altcoin to be a good investment to diversify a cryptocurrency portfolio, the current Ethereum slowdown has made it difficult for investors to be optimistic about the altcoin's long-term prospects. With this in mind, investors and traders should exercise caution regarding the current state of ETH. However, Visa's continued use of the Ethereum network may draw attention to the altcoin, further cementing the token's position as the market's top crypto asset. If the US$1.5k support holds, we can anticipate a bullish rise in the medium to long term as more Visa developments unfold.