The world’s second-largest cryptocurrency Ethereum, with a market cap of $477 billion, broke the psychological barrier of $4,000 for the first time today, setting a new all-time high of $4,142.
At the time of writing, Ethereum (ETH) is trading at $4,128. Currently, Ethereum is caught in a state of price discovery.
Last week, Ethereum surged to surpass the Bank of America in terms of market capitalization. According to AssetDash data, Ethereum is now regarded as the world’s 15th largest asset, surpassing consumer giants Johnson & Johnson and Walmart. Its valuation is now ranked behind JPMorgan.
Last Friday, asset management company VanEck submitted a proposal for an Ethereum exchange-traded fund (ETF) to the US Securities and Exchange Commission, stimulating a price surge for Ether.
On April 17, the Ontario Securities Commission approved three Ethereum ETFs (exchange-traded funds). CI Global Asset Management, Purpose Investments Inc., and Evolve Fund Group Inc. have all received approval to launch three separate Ether ETFs. A fourth Ethereum ETF was also launched at the end of April by 3iQ.
At the same time, increased institutional interest in Ethereum also inspired Ethereum bulls. According to a Coinshares report, the positive sentiment surrounding Ethereum resulted in inflows of $30 million, bringing total investment products under management to a record $13.9 billion.
Per data from Coinmarketcap, Ethereum has risen by 33.40% in the past 7 days.
Ethereum (ETH) Price Analysis
Source: ETH/USDT Daily via TradingView
It can be seen from the candlestick chart above that the price of Ether has been rising for 10 consecutive days.
The transaction price of ETH/USDT is much higher than the Exponential Moving Average ribbon. Both the upward sloping moving average and the bullish MACD indicate that the bulls are currently dominating the market.
The potential behind the Etherum network is great, and there is a lot of anticipation and optimism felt for some of the network’s upcoming infrastructure upgrades, which will be major: EIP-1559 and ETH 2.0. Such upgrades will partially help resolve the issue of expensive gas fees on the Ethereum network and with the integration of a proof-of-stake consensus mechanism, a more environmentally friendly alternative to the current proof-of-work protocol will be offered.
Market analyst Lark Davis believes that Ethereum has great potential and will consolidate its position as a deflationary currency by the end of this year, as its value will continue to rise over time.
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