The Ethereum price is on the cusp of a major breakout to an all-time high as demand for the cryptocurrency jumps. The ETH token has had a spectacular jump from the July low of $1,700 to today’s high of more than $3,930.
As a result, the coin is just a few points below its all-time high while its total market capitalization has jumped to more than $460 billion. This makes it the fourth-biggest financial platforms in the world after Berkshire Hathaway, Visa, and JP Morgan.
ETH price momentum continues
There are several main reasons why the price of Ethereum has jumped in the past few days. First, this breakout is mostly because of the overall upswing across the cryptocurrencies market. Indeed, other cryptocurrencies like Bitcoin, Cardano, and Binance Coin have also rallied. As a result, the total market cap of all these coins has risen to more than $2.3 trillion.
Second, on-chain data has been supportive of Ethereum. Data compiled by Glassnode shows that the number of ETH addresses has been in a strong bullish trend in the past few days. Indeed, the total addresses with a non-zero balance has jumped to an all-time high.
At the same time, the total exchange inflow volume has risen while gas prices have jumped to the highest level on record. This is a sign that activity in Ethereum’s network has rebounded and is relatively strong.
Third, activity in the Decentralized Finance (DeFi) industry has surged recently. Data compiled by DeFi Pulse shows that the total value locked has jumped to more than $99.14 billion. This means that it is just a matter of time before the TVL jumps to more than $100 billion.
The daily chart shows that the ETH price has been in a strong bullish trend in the past few weeks and is now a few points below its all-time high. At the same time, Ethereum has moved above the 25-day and 50-day exponential moving averages. It is also being supported by the Ichimoku cloud.
Therefore, the ETH price will likely maintain a bullish trend as bulls target the all-time high at $4376, which is about 11% above the current level. On the flip side, a move below the key support at $3,500 will invalidate this view.