One of the biggest complaints about Bitcoin is that it has no value in the block chain world, unlike Ethereum where apps can be built on top of it.
Thus, when people see Ethereum racing to the moon, it sounds logical that ETH is in great demand as many platforms now use it for transaction signing. However, therein lies the problem as well.
Unlike Bitcoin, ETH is the gas for smart contracts, and there is a specific price for each action, and this price is usually a fixed micro-fraction of ETH. It can vary depending on the complexity of the string of actions required, but it is typically fixed once it is set.
Thus, when ETH rockets to the moon, it automatically makes each transaction significantly more expensive.
In a simple layman example, when the price per barrel of oil shoots up to US$ 100; the only winners are the oil producers. Every other consumer suffers.
What happen then, was that it also increased the incentive for consumers to move away from oil.
Hence, do we buy ETH because of the short term squeeze of excess demand over limited supply, or do we believe that ETH will be the defacto platform?