Ethereum price surged to a new all-time high as investors continued to pile into the currency. ETH rose to an ATH of $3,530, bringing its total market capitalization to more than $378 billion. This made Vitalik Buterin, one of the co-founders of the network a billionaire.
Why Ethereum has rallied: There are several reasons why ETH price has rallied. First, there is a greater user adaption of the network as more developers rush to build decentralized apps. While the blockchain is often criticized for its higher cost and slow speed, it has emerged as the preferred network.
Second, there is great institutional purchases of Ether. Indeed, a recent study published in CoinTelegraph found that institutional investors hold ETH worth more than $58 billion. This trend could gain steam as investors realize the importance of ETH. Indeed, in an interview yesterday, Jim Cramer said that he had bought some Ether.
Third, Ethereum price has surged because of the rising growth of the Decentralized Finance (DeFi) industry. The total value locked has jumped to more than $75 billion. This is a remarkable thing considering that the industry was unexistence a few years ago. ETH price has also surged because of the low-interest environment and the transition to ETH 2.0.
Ethereum price prediction
Regular readers know that I have been bullish on Ethereum for years. Indeed, Ether was the first cryptocurrency I ever bought and it is a bigger part in my portfolio. Recently, I predicted that the currency would surge to $3,500, which happened this week. On the four-hour chart, we see that the currency is being supported by the short and longer-term moving averages.
It also seems to be forming a bullish pennant pattern that is shown in green. The RSI has also retreated from the overbought level. Therefore, in my view, I suspect that the ETH price will continue with its upward trend as bulls start eying the next resistance at $4,000. Nonetheless, we can’t rule out a short pullback in the near term. This prediction will be invalidated if the price drops below $3,000.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.