The Ethereum price made a bullish breakout on Thursday as demand for the currency surged. ETH jumped to a multi-month high of $4,300 as it continued playing catch up to Bitcoin, which rose to an all-time high this week. The market capitalization of more than $505 billion.
Why is ETH soaring?
There are several reasons why Ethereum price is surging and nearing its all-time high. First, the jump is part of the enthusiasm about the recently launched Bitcoin Futures ETF (BITO). BITO is a fund that tracks the performance of the CME Bitcoin futures and is the first asset of its kind. This launch has seen the price of Bitcoin and other cryptocurrencies surge.
Second, now that the Securities and Exchange Commission (SEC) has accepted a Bitcoin ETF, analysts expect that Ethereum will be next. Besides, the CME already offers an Ethereum futures ETF. Therefore, there is a possibility that investors will start pricing in this trend. Already, some companies like Grayscale have announced that they will apply their ETH ETF license.
Third, Ethereum price is rising as investors target the transition from a proof-of-work to a proof-of-stake network. Already, the developers have done the London hard fork and there are hopes that the transition will happen in the first or second quarter of the coming year. Such a move will lead to significant quick speeds for Ethereum’s network.
Fourth, the jump is being supported by the strong performance of Ethereum’s DeFi projects. According to DeFi Llama, the total value locked (TVL) of Ethereum DeFi projects has jumped to more than $164 billion. The biggest of these projects are Curve, Aave, Compound, InstaDapp and Maker.
Finally, the Non-Fungible Token (NFT) industry has done relatively well and Ethereum is the biggest player in it. And analysts expect that it will keep doing well. This could lead to more demand for ETH.
Ethereum price prediction
The daily chart shows that the Ethereum price has done relatively well in the past few months. For one, it has managed to move from the lowest level in July and is currently eying its all-time high. The price is being supported by the short and long-term moving averages. It has also managed to move from the September high of $4,040.
Therefore, the sky is the limit for Ethereum prices. There is a likelihood that the bullish trend will continue as investors eye the key resistance at $5,000.
