The Ethereum price surged during the weekend and crossed the important milestone of $4,000. ETH is trading at $4,120, bringing its total market cap to more than $477 billion. It has surged by more than 480% this year, becoming one of the best-performing cryptocurrencies in the world.
Why Ethereum has surged: To understand why ETH price has surged, it is important to first understand what it is. Ethereum is a blockchain project that allows people to build decentralized applications like Decentralized Finance (DeFI) and Non-Fungible Tokens (NFT). In fact, most blockchain projects in existence today like Aave, Maker, and Uniswap are all built on Ethereum’s blockchain.
Therefore, the great adaption of these products has led to more demand for ETH, which is the native token for the network. Indeed, the total value locked (TVL) of DeFi has surged from more zero to more than $86 billion today.
Ethereum price has also surged because of the rising adaption by investors, who believe that it is a less-expensive bet than Bitcoin whose price has surged to almost $60,000.
Ethereum price prediction
The daily chart shows that the ETH price has been in a strong upward momentum lately. This has seen its price surge above the 25-day and 50-day exponential moving averages (EMA). In technical analysis, this is usually a supportive sign for the currency. The two lines of the MACD have also continued rising. The price is also above the ascending black trendline and the important support level at $2,032, which was the highest level on February 21.
Therefore, in my view, the momentum is strong especially after the weak US non-farm payroll numbers (NFP). The data sent a signal that the Fed will likely hold steady for the next few months or years. As such, we can’t rule out a situation where the price surges to $5,000, which is the next key level of resistance. However, a drop below the support at $2,032 will invalidate this trend.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.
ETH price chart
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