The Ethereum price is hovering near its all-time high after it declined sharply last week. ETH is trading at $2,645, which is a few points below its ATH at $2,717. It has gained by more than 30% in the past few days, boosting its total market cap to more than $304 billion.
What happened: Ethereum price has done substantially well in the past few days after it dropped substantially last week. This recovery is mostly because of several reasons.
First, Bitcoin, has also recovered to more than $55,000. The latest catalyst is news that a large Japanese company known as Nexos has acquired BTC worth more than $100 million. Other companies will likely boost their BTC spending soon. Ethereum and other currencies do well when Bitcoin rises and vice versa.
Second, demand for Ether has surged, as evidenced by the rising gas fees. This has happened as transactions in the industry have risen. For example, the total value locked in the DeFi ecosystem has surged to more than $63 billion.
Third, Ethereum price has jumped because of the falling US bond yields ahead of the Fed decision. Therefore, as I wrote on Monday, this will be a pivotal week for the currency because of the Fed decision. If Powell comes out being hawkish, we could see a short-term decline of ETH and other currencies.
Ethereum price prediction
Regular readers know that I have been bullish on Ethereum for a while. Last year, I wrote that the currency would surge to $1,000 when it was trading at $500. And this year, I predicted that it would surge to $2,000 and then upgraded the outlook to $2,500. Recently, I wrote that the currency was heading towards $3,000.
Looking at the daily chart, we see that the price has been on a strong upward trend and is being supported by the 25-day and 50-day moving average. Therefore, this bullish trend will continue so long as the price is above these two averages. I still believe that the price will soar to $3,000 in the near term. This is about a 14% jump from the current level.