Ethereum price soared in overnight trading as demand for the Decentralized Finance (DeFi) projects continued to rise. The ETH price reached an all-time high of $1,703, bringing its market capitalization to more than $188 billion. Other currencies like BTC, Polkadot, and Litecoin also rallied.
What happened: Ethereum’s network is the most dominant in the development of decentralized finance (DeFi) projects. These products are attempting to quickly transition the world of finance from one controlled by a small group of people like bank CEOs to one controlled by users.
The total value locked in the industry rose to more than $32 billion for the first time yesterday. It started the year at about $21 billion. This is notable since the biggest DeFi projects are built using Ethereum’s network.
Ethereum price prediction
Early this week, I wrote that the ETH price was about to skyrocket. I pointed to a cup and handle pattern that had been forming. At the time, the price was below $1,500. So, what happens next?
When you measure the distance between the top and bottom sides of the cup and handle pattern, you realize that the Ethereum price could rise to above $2,800 in the long term.
However, in the short term, ETH bulls will start targeting the important resistance level at $2,000. This is about 20% above the current price. Still, I anticipate some resistance before this happens. The invalidation point for this prediction is if the price manages to drop below $1,400.
ETH Price Chart