The Ethereum price is hovering near its all-time high as demand for the currency rises. ETH is trading at $4,700, which is slightly below its all-time high of almost $4,900. Its total market capitalization has risen to more than $558 billion.
Strong demand
Ethereum had a relatively calm weekend. While its price retreated to about $4,600, it quickly jumped to the current $4,700.
There are several reasons why Ethereum price has jumped by more than 175% from its lowest level in July this year. First, analysts have cheered the strong performance of Ethereum-built products. For example, the demand for cryptocurrencies like Shiba Inu has been rising.
Second, the decentralized finance (DeFi) industry, which is critical for Ethereum has also risen sharply. Today, data compiled by DeFi Llama shows that Ethereum has about 188 DeFi projects that have a market capitalization of more than $182 billion. This is an excellent performance since the DeFi industry was not in existence a few years ago.
Third, the use case for Ethereum in other decentralized industries has been relatively strong. For example, Ethereum has become widely used in gaming, non-fungible tokens (NFT), and the metaverse. Indeed, Decentraland have been built using Ethereum’s technology.
Analysts and investors believe that Ethereum’s use case is limitless. For example, last week, Ken Griffin of Citadel said that an Ethereum-built currency will one day replace Bitcoin.
Meanwhile, Ethereum price is rising because of the strong performance of Bitcoin. Bitcoin is trading at more than $65,000, which is close to its all-time high. Most importantly, it has remained steady after the Taproot update.
Ethereum price prediction
The daily chart shows that Ethereum price has been in a steady bullish trend lately. However, a closer look shows that the price momentum has slowed quite a bit. This was relatively expected since the price is approaching the key resistance at $5,000.
ETH price has also moved above the short and longer-term moving averages. It has also risen above the key resistance level at $4,365, which was the highest level in May.
Therefore, I suspect that Ethereum price will zoom past $5,000 this week. This view will be invalidated if it falls below the key support at $4,300.
