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ETH surprised the market due to its activity over the weekend

Ethereum reached a new ATH over the weekend, which even reached $ 4,200 today. It seems that it has still not stopped growing, so we are yet see what else it shows in terms of price. What is this growth driven by and what can we expect in the future?

Ether (ETH) has crossed the $ 4,000 mark for the first time in history and the bulls are celebrating

Last weekend, the market was full of expectations regarding the cryptocurrency Dogecoin, which was originally created as a joke, but is currently enjoying huge (though not fact-based) interest from investors and traders around the world. It failed to reach the goal of $ 1.00 and, conversely, its price fell by 30%. Much more positive days are behind for the cryptocurrency Ether, which currently creates one ATH after another. At the time of writing, its price is $ 4,170 and total market capitalization has exceeded $ 480 billion.

Ether has not only had a successful weekend, but also shows its strength in the appreciation for the last week, which represents 41% in price appreciation. In the past month it more than doubled its value. Many analytical companies report the interest of institutions as the main driver of this strong growth. In addition, Ether is pushing up by many projects that are working on its blockchain Ethereum. Only yesterday, in this article, we mentioned that twice as many ETHs are locked in DeFi smart contracts as are recorded on centralized exchanges, which of course significantly reduces its offer and pushes the price up. It is certainly worth mentioning that the NFT sector, the digital world of art, is also one of the main drivers of the ETH price growth.

Rise of the price of Ethereum Ether (ETH) price chart, Source: coinmarketcap.com

In addition, the mentioned growth comes at a time when we are expecting interesting news on its blockchain. One of them is the EIP-1559 update , which should lead to a reduction and stabilization of fees in this chain and, of course, a huge transition of the entire network to the Proof-of-Stake system. These fundamental changes may have a very significant effect on the future of ETH price.

Can Ether also attack the significant dominance of Bitcoin?

Ether recorded an increase of more than 350% during 2021 , significantly outperforming Bitcoin with a gain of 90%. Therefore, many analysts expect ETH to show us other new highs this year. Nigel Green, CEO of deVere Group, predicts that ETH will attack Bitcoin’s dominance later this year.

“Compared to (BTC), Ethereum is more scalable, offers more uses and solutions, such as smart contracts which are already used across many sectors, and is backed with superior blockchain technology.” Nigel Green, deVere Group CEO Ethereum logo Ether (ETH) coin, Source: shutterstock.com

Ether’s price predictions for 2021 indicate the continuation of the ongoing bull run, in which ETH could reach the level of $ 5,000. With this limit, already underway, less conservative analyzes come into play and speak about $ 10,000, or even $ 50,000 level. Eventhough it seems to be a bit much, the sentiment in the market is currently very positive and ETH can be very surprising as we already saw many times.

Not everyone is happy with the rocket growth and the new ATH

Anyone who has recently bet on a drop in the price of ETH has lost their funds. According to the data, more than $ 77 million was liquidated in this way, and the best-known crypto exchange Binance alone recorded liquidations of short positions worth $ 11 million. In addition, the aforementioned update of EIP-1559 will result in the burning of part of the transaction fees, which will lead to a further reduction in the ETH offer and the bears are therefore unlikely to have a very pleasant period ahead.

We are currently witnessing a situation where the number of ETH withdrawals from exchanges is significantly higher than the number of deposits and this means that no large price declines should take place. In addition, just nearly $ 400 million in stablecoin Tether USDT was sent to the market in a short time, indicating that someone might be going to buy a large volume, and we will be watching into which cryptocurrency this volume will be reflected.

Slavomír is working in the field of cryptocurrencies since 2018. As a Co-Founder and Chief Marketing Officer of Dollero Technology, which is currently developing a crypto exchange ...

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