The second largest cryptocurrency by market cap Ethereum is accelerating into uncharted territory. At the time of writing, the ETH price has climbed above $ 1,900 and according to several analysts there is a good chance that the bulls will prevail.
Economist Alex Kruger said via Twitter that Ethereum will be “going to the next level soon,” meaning the cryptocurrency will soon hit $ 2,000. Kruger relies on Fibonacci expansions, derivatives market performance and ’round numbers’ to claim ETH has established strong support in the $ 1,500 to $ 1,600 range and could reach $ 2,750 .
Why Ethereum has rallied and how it is different from 2018
CryptoQuant CEO shares data indicating that selling pressure and trading exits for ETH on the exchanges are lower than in 2018. As shown in the chart below, ETH trading entries and exits are currently significantly lower than in January 2018 and July 2019, when the cryptocurrency peaked and suffered a subsequent crash. With a current trend reversed, the price of ETH looks set to continue its uptrend.
Ethereum’s fundamentals are equally bullish. IntoTheBlock data shows a 38.9-fold increase in DeFi Sector from 2020, when the Total Locked-In Value (TVL) was $ 1.07 billion. Today that figure has risen to a record high of $ 41.63 billion.
Moreover, the increase in TVL of the DeFi sector coincides with an increased use of the Ethereum network. Over the past week, Ethereum’s blockchain processes an average of 1.2 million transactions per day with 550,000 active addresses per day.
Institutions began adopting ETH based on a rise in the indicator of transactions over $ 100,000 recorded on Ethereum. This volume has increased 45 times last year.
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