Ethereum Hits New ATH! Is ETH Price Marching Towards $5K?

Author: Sohrab Khawas

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    Story Highlights
    • ethereum shoots past $1k but high gas fees still a problem

    It’s no secret that Ether has been on a tear over the last couple of weeks, with the second-largest cryptocurrency by total market capitalization scaling up to new all-time highs seemingly every other day. Ethereum’s 5% gain over the past 24 hours has pushed prices to a record $4,140. It’s built on gains that have seen the second-largest digital asset increase by 40% over the past seven days and double in price over the past thirty.

    The next target for the bulls could be near the USD 4,120. On the downside, the price might remain stable above the USD 4,000 level. The next key support is near the USD 3,950 level.

    Ethereum’s Bull Market to Continue

    The crypto space appeared to have recovered slightly as most of the crypto assets including Bitcoin, Ethereum, XRP rebound with decent gains.

    1. Increase in Daily Active Address

    Ethereum has reached close to 500k daily addresses on a 90-day MA, which has doubled in the past year.

    1. ETH-Most useful network in the world

    Ethereum dominates the crypto space in terms of ‘fees paid’. It has outperformed Bitcoin in terms of a single day fee collection.

    1. High Demand for Ethereum Block space

    Despite the current gas fees are very high, more than 80 billion gas is now being used on daily basis. 

    1. More Stablecoins issued on ETH

    The stablecoins issued on Ethereum have just gone parabolic since the start of the year 2020. At present more than $16 billion stablecoins have been issued on ETH.

    1. Growth in DeFi users

    The boom in the DeFi space has led to a drastic increase in DeFi users. There are now nearly 1M DeFi users which have grown 10 times since the beginning of the year.

    1. Increased TVL in DeFi

    The total value locked in DeFi space is now more than $14B. In fact, 5 different projects alone have TVL more than $1 billion each.

    1. ETH becoming an Economic Vaccum for all Assets

    As many as 150k BTC worth more than $2 billion has been ported from Bitcoin to Ethereum. Hence becoming an economic vacuum for other assets initiated by Bitcoin.

    1. DEX compete with CEX

    The DEX or decentalized exchange record nearly $20 billion daily trade volume in the last 30 days bringing the combined yearly total of $86 billion. Therefore giving a tough competition for any CEX or centralized exchanges.

    Collectively, a small phase of dump or rather can be termed as a correction phase lived a short phase and most of the assets rebounded pretty well. In fact, in the coming days, all the major assets are expected not only to recover from losses but to surge to great highs.

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