Ethereum (ETH) Breaks Past $4,000: What’s Next?
Ethereum (ETH), the world’s second most popular cryptocurrency by market cap, continues to soar towards new all-time highs, breaking past $4,000 after its rally took it over $3,000 just last week. At the time of writing, ETH/USD is trading at around $4,110 with a market cap above $478 billion per data on CoinMarketCap.
The interest in Ethereum continues to rise among institutional investors as its blockchain network not only offers a way to trade or invest in digital currencies but is a popular platform for DeFi and NFTs, both of which are gaining significant traction lately. According to unofficial estimates, the total value locked (TVL) of DeFi projects on the Ethereum network exceeds $75 billion already, and is on a constant rise.
The latest surge in ETH prices came on the back of an announcement last Friday from asset management firm VanEck filed a proposal with the US SEC for an Ethereum-based ETF. VanEck’s Ethereum Trust is planning to list its shares on the Cboe BZX Exchange, following which it could looking into launching the US’s first Bitcoin ETF as well.
Key Levels to Watch
Technical analysis is aligning with the promising fundamentals, backing the expectations for the uptrend in ETH/USD to continue in the near-term, with the price expected to make an attempt at scaling the next peak of $5,000 soon. But before Ethereum can do that, buyers need to sail past the resistance above $4,600, which is the immediate level to focus on.
Keep in mind that this is not going to be easy to scale, especially as the market is probably still absorbing the news of the ATH above $4,000 for now. Increased incidence of profit-taking above this level in the near-term could very well send prices down to this level which is now acting as support.
A break below this, however, could easily pull prices back to the $3,600 level soon where some consolidation could take place before buyers attempt to push to new highs once again. No matter which way the price action goes, the high volatility is expected to keep things exciting for Ethereum traders going forward.
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