Ethereum price had held steady in the past few days as the Santa Claus rally continues. ETH is trading at $4,090, which is about 18% above its lowest level this month. Other cryptocurrencies have also risen, pushing their total market capitalization to more than $2.55 trillion.
Santa Claus rally
Ethereum price has had a tough time recently. After surging to an all-time of more than $4,800 in November, the coin crashed by 28% and reached a low of $3,480 in December. In the past few days, Ethereum has been in a bullish trend as bulls attempt to retest its previous highs.
There is no major catalyst that has pushed Ethereum higher. A likely reason is that the ETH 2.0 process is going on well. This is a process where Ethereum is transitioning from a proof-of-work network to a proof-of-stake platform.
In a PoW system, new Ethers are created through mining, a process that is energy inefficient and costly. In a proof-of-stake, new blocks are authorized using a consensus among validators. Last week, the developers launched the Kintsugi testnet. This means that the merge between the old and the new platforms is a bit close.
Ethereum price is also rising as investors cheer the ongoing adoption of Ethereum. While Ethereum’s network is facing significant competition, its pole position makes it possible for it to maintain its market share.
For example, while many DEFI networks have come up, the total value locked (TVL) of Ethereum apps is higher than that of all other platforms combined. The second biggest platform is Terra, which has a TVL of about $20 billion.
The same trend is happening in the non-fungible token (NFT) industry. Recent data shows that Ethereum dominates the industry as the volume of NFT jumped to more than $23 billion this year.
Ethereum price prediction
The four-hour chart shows that the ETH price has been in a bullish trend in the past few days. This trend has pushed its price above the 25-day and 50-day moving averages. Oscillators like the Relative Strength Index (RSI) and the MACD have also been rising.
However, a closer look shows that Ethereum price has formed a rising wedge pattern. In price action analysis, this pattern is usually a dangerous one since it usually points to a reversal. Therefore, the price will likely have a bearish breakout in the coming days or weeks.
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