Ethereum price had a relatively strong October as demand for digital currencies rebounded. ETH price jumped to an all-time of $4,453 in October, which was about 50% above the lowest level during the month. As a result, its total market capitalization rose to more than $500 billion.
Why ETH prices rose in October
There are several reasons why Ethereum prices jumped in October. First, the rally happened as investors moved on past the regulatory challenges. Some of the top regulatory concerns that have bothered investors recently include the Chinese crackdown and the Securities and Exchange Commission (SEC) review of stablecoins.
Second, the currency rallied after the SEC decided to allow the first Bitcoin Exchange-Traded Fund (ETF). The ETF was welcomed warmly by the market since its inflows have jumped to more than $1 billion. Analysts now believe that the next ETF to be launched will be on Ethereum. Besides, CME already offers Ethereum futures products.
Third, transactions in Ethereum’s network kept rising in October. Data by EtherScan shows that the number of Ethereum transactions and accounts rose sharply in October. This performance pushed Ether’s gas prices close to an all-time high.
Meanwhile, the London hard fork introduced the concept of burning to Ethereum’s network. Recent data shows that the number of Ethers being burnt per day has jumped to more than 13,000. In October, the daily burn jumped to an all-time high of more than 16,500. Burning helps to reduce the overall supply of the coins.
Another reason why Ethereum price rose is that its DeFi ecosystem has been relatively strong in the past few months. This is important because the number of Ethereum-killers has been on an upward trend. They include Fantom, Avalanche, Solana, and Terra.
According to DeFi Llama, there are about 275 DeFi platforms in the network today. These DeFi platforms have a total value locked (TVL) of more than $163 billion. In contrast, the Binance Smart Chain (BSc) network has about 139 apps that have a TVL of more than $18 billion.
Ethereum price prediction
The four-hour chart shows that the ETH price has been in a strong bullish trend. Along the way, it has formed an ascending channel that is shown in black. It has also moved above the 25-day and 50-day moving averages (MA). The MACD is slightly above the neutral level.
Therefore, the coin will likely keep rising as bulls target the next important resistance level at $5,000. This trend will likely happen in November.
