After already taking the price mark at USD 3,000 without major resistance, the price of ETH now also rushed through the USD 4,000 price mark. Is Ethereum going to the moon, or is the sell-off coming?
The latest rise in the Ethereum price above the next psychologically important price mark at 4,000 USD has happened. It now leaves boosted the market capitalization of the second-largest cryptocurrency to about 480 billion USD. This means Ethereum is now worth about as much as SAP, Siemens and VW combined.
The important question, however, is: How long can this continue for ETH? Will Ether go all the way to the moon, or will it soon run out of fuel, and the rocket comes back to earth?
While Bitcoin (BTC) continues to consolidate, market participants are looking to the Ethereum price. And the number 2 of the largest cryptocurrencies clearly shows which hour has struck: the hour of the bull. The price mark at 3,000 USD already offered no significant resistance, and now — only 8 days later — the ETH price cracks the 4,000 mark.
Ethereum mainly benefits from the rapidly growing DeFi sector and the developments around Non-Fungible Tokens (NFTs) on Ethereum. At the same time, users enjoy the somewhat more stable transaction costs, which continue to drive up transaction volumes. Rising address data and more network usage? A bullish thing!
In addition, there are the prospects of EIP-1559 (potentially deflating Ether), as well as the 2nd Layer Solution “Optimism” this summer. In both cases, investors are looking at Ethereum for most likely value-enhancing events. So the long-term outlook remains bullish for the Ethereum price.
No price only rises steadily as if pulled on a string. Rather, price developments on the markets are wave-like. Accordingly, the Ethereum price will also turn around before it could rise again and probably reach further all-time highs.
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Source: https://l-wiesflecker.medium.com/ethereum-price-at-over-usd-4-000-anticipation-of-optimism-and-eip-1559-boosts-the-market-80f877c1c5c3?source=rss——-8—————–cryptocurrency
