As a researcher with a background in cryptocurrencies, I have witnessed firsthand the remarkable surge of Ethereum’s price over the past week. The bullish trend is undeniable, with constant gains pushing Ethereum to new month-highs and surpassing its previous record market cap. This upward momentum isn’t limited to Ethereum alone but is affecting the entire crypto ecosystem positively.
Following a 25% increase over the past week, Ethereum‘s price reached a monthly peak of $3937 moments ago. The second largest cryptocurrency, Ethereum, is currently showing bullish signs, resulting in continuous growth and boosting its market capitalization to an impressive $467.8 billion. Furthermore, the transactions and network activity have significantly escalated, leading to a trading volume of $17.8 billion after experiencing a 65% rise. However, this is only the beginning for Ethereum’s price as numerous analyses and predictions suggest it will surpass any previous records.
The bullish sentiment toward Ethereum isn’t just impacting that particular cryptocurrency; instead, it’s causing a ripple effect throughout the entire crypto market. An impressive milestone has been reached in the decentralized finance (DeFi) sector, with the total value locked reaching an astounding $117 billion – a new two-year record high. Notably, Ethereum holds a significant portion of this growth, accounting for approximately 60% of the locked value. Furthermore, the Ethereum layer 2 blockchains are also experiencing peak performance, with a total value locked at approximately $47 billion.
In this blog post, we’ll explore the factors fueling Ethereum’s current price surge and attempt to estimate how high its price might climb further.
Factors Backing The Ethereum Price Surge
Kavita Gupta, the General Partner of Delta Blockchain Fund, referred to Ethereum as “Digital Oil” during an interview when asked about its comparison to Bitcoin being called “Digital Gold.” The price surge of Ethereum commenced shortly after Bloomsberg’s analyst prediction for ETF approval, and the subsequent approval caused even more excitement among investors. Regardless of the ETF approval timeline, the buzz surrounding Ethereum had already reached a peak.
As a researcher studying the cryptocurrency market, I can tell you that the approval of an Ethereum Exchange-Traded Fund (ETF) holds more significance than the Bitcoin ETF for several reasons. Ethereum is not merely a cryptocurrency; it is the pioneer and innovator in the crypto industry, having introduced smart contracts and decentralized applications. This unique value proposition sets Ethereum apart and positions the Ethereum ETF to outperform its Bitcoin counterpart.
Can Ethereum Surge To An ATH?
The excitement surrounding Ethereum has strongly indicated its ascent toward the all-time high (ATH) price of $4,891.70. Supporting this notion, Arthur Cheong, Defiance Capital’s CEO, forecasts that Ethereum will reach a price of $4500 before the Ethereum ETF becomes available for trading.
4.5k before spot ETF go live for trading imo.
— Arthur (@Arthur_0x) May 26, 2024
With robust trading activity fueling the upward trend and numerous other positive signs, it’s likely that Ethereum’s price will reach a new all-time high (ATH) soon. However, if Ethereum fails to surpass the resistance levels around $3900 and $4000, there is a risk of a price drop. Nonetheless, according to current market analysis, Ethereum’s price could first hit $4500 before continuing its upward journey towards $4891.70 and beyond.
As an analyst, I’ve observed that Ethereum’s price movement closely mirrors Bitcoin’s recent trajectory. Consequently, considering Bitcoin’s surge to around $6000 within the last two months, it’s reasonable to anticipate a similar rise for Ethereum. Additionally, influential figures in the crypto sphere are eagerly awaiting Michael Saylor’s potential investment in Ethereum. Should this occur, it would mark another significant milestone, as MicroStrategy’s Bitcoin investment previously boosted its price, and a comparable effect could be seen with Ethereum.
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2024-05-27 16:20