Only hours ago, the price of Ethereum reached its month-high of $3937, following a 25% increase the week before. Ethereum, the second-largest cryptocurrency, is rising steadily, increasing its market capitalization to $467.8 billion. In addition, there have been several times as many transactions and network activity, increasing the trade volume to $17.8 billion following a 65% increase. However, the price of ETH is only getting started, according to several studies and forecasts, and it will soon break all prior records.
Ethereum’s optimistic outlook favors the whole cryptocurrency ecosystem, not just on Ethereum alone. Reaching a record level of $117 billion, the total value locked (TVL) in decentralized finance (DeFi) has increased over the past two years. More significantly, Ethereum accounts for 60% of the locked value. Furthermore, the layer two blockchains of Ethereum are likewise in their highest TVL zone, or roughly $47 billion.
What is behind this price surge, and how much higher can Ethereum go from here? Let’s talk about that in this blog post.
The Reasons for the Ethereum Price Increase
As soon as the Bloomsberg analyst projected that the Ethereum ETF would be allowed, the price of Ethereum started to increase. After it was approved, it took off. The excitement has skyrocketed even in the absence of the start of the ETH ETF transaction. Given that Ethereum is referred to as “digital oil,” Kavita Gupta, general partner of the Delta Blockchain Fund, makes sense of the excitement. This declaration follows an interviewer asking Kavita what Ethereum is to her and why she thinks Bitcoin is called “Digital Gold.”
The Ethereum ETF has received far more approval than the Bitcoin ETF since Ethereum is not simply a cryptocurrency but also an industry pioneer. This will elevate the Ethereum ETF above the Bitcoin ETF. Due mostly to its popularity, several analysts have predicted that Ethereum may rise above $11,000 by year’s end and even higher the following year.
Is Ethereum Able To Reach An ATH?
The excitement around Ethereum has pointed directly to its rise to the $4,891.70 ATH objective. Arthur Cheong, the CEO of Defiance Capital, has confirmed this by predicting that the price of Ethereum will reach $4500 before trading for the Ethereum ETF.
4.5k before spot ETF go live for trading imo.
— Arthur (@Arthur_0x) May 26, 2024
The price of ETH may soon reach a new all-time high (ATH) since the trading volume, along with many other optimistic indications, is contributing to the price spike. Ethereum’s price, however, may drop if it cannot overcome the resistance level by $3900 and $4000. According to the analytics, the cost of Ethereum is expected to reach $4500 before rising to $4891.70 and beyond.
Furthermore, Ethereum’s price trajectory resembles that of Bitcoin. Based on this, Ethereum might have had a similar increase to $6000 in the following two months, as did Bitcoin. In addition, prominent figures in the cryptocurrency space anticipate that Michael Saylor, the inventor of MicroStrategy, will be the next to invest in Ethereum. Another significant event will occur when Microstrategy drives up the price of Bitcoin, and Ethereum may follow suit.
