Ethereum price surged to an all-time high (ATH) as demand for the cryptocurrency kept rising. The ETH token is trading at $4,733, which is the highest level it has been on record. This rally brings its total market capitalization to more than $558 billion, making it the second-biggest coin in the world.
Why is ETH rising?
Ethereum is not the only digital currency whose price is surging. Bitcoin has jumped close to its all-time high of more than $66,000 while the total market capitalization of all cryptocurrencies has jumped to more than $2.88 trillion.
There are several reasons why Ethereum price has jumped sharply today. First, there is a bullish momentum going on, which has pushed more investors to the coin. This momentum has been going on in the past few months.
Second, some big analysts believe that the price will keep rising. For example, in a recent note, analysts at Goldman Sachs said that they expect that the price will soar by about 80% by the end of the year. In another note, analysts at JP Morgan said that Ether was a better bet than Bitcoin as the prices of cryptocurrencies rise.
Third, Ethereum has risen because of the rising transactions in its network. In the past few days, the total value locked (TVL) in Ethereum’s DeFi platforms has jumped to more than $180 billion. This is a significant achievement for an industry that did not exist three years ago.
Other platforms built by Ethereum have also surged. For example, demand for non-fungible tokens (NFT) has risen substantially in the past few days. At the same time, new industries like metaverse has opened another opportunity for Ethereum.
Meanwhile, Ethereum price is rising as investors reflect on the Fed decision. In its decision last week, the Fed decided to start tapering. While this is often a bad thing for cryptocurrencies, analysts believe that the tightening Fed issues have already been priced in.
Ethereum price prediction
The four-hour chart reveals that the ETH price has been in a strong bullish trend in the past few days. This trend accelerated when the price moved above the key resistance level at $4,381, which was the previous all-time high.
Ethereum price is still above the 25-day and 50-day moving averages. It is also slightly below the upper side of the ascending channel that is shown in black. The Relative Strength Index (RSI), on the other hand, has reached the overbought level. Therefore, ETH will keep rising as bulls target the key resistance at $5,000.
