Ethereum price is surging as investors cheer the growth of the ecosystem. ETH rose to $3,830, which is its all-time high. According to CoinMarketCap, the currency has a market capitalization of more than $442 billion, making it the second-biggest digital currency in the world. It has surged by more than 442%, making it one of the best performers this year.
Ethereum price chart
What happened: Ethereum is a blockchain project that was developed in 2014 by Vitalik Buterin and a team of computer scientists. Like all blockchain developers, they were incentivised by Satoshi Nakamoto, who founded Bitcoin, a few years earlier.
But their goal was different. They wanted a platform that would help other people build decentralized applications. Years later, Ethereum has become the best-known platform for building these applications.
Today, it has been used to build the biggest DAPP projects like decentralized currencies, also known as DeFi. It is also being used to build non-fungible tokens (NFT) projects. To achieve all this, ETH is the native currency that developers use in the ecosystem.
After years of following Bitcoin, it now seems like the BTC is following Ethereum price. This is partly because many investors are turning to it as a proxy for BTC. Also, they have realized the importance of the network for the decentralized industry. As shown below, the total value locked for all DeFi tokens has surged to more than $81 billion. This is remarkable since the industry was inexistent a few years ago.
DeFi total value locked
Ethereum price prediction
The daily chart shows that the Ethereum price has surged recently. It has moved above the 25-day and 15-day exponential moving averages (EMA). It has also moved above the important support of $2,040 while the Relative Strength Index (RSI) has approached the overbought level of 70. The pair has also moved above the ascending triangle.
Therefore, in my view, I suspect that the ETH price will continue surging to $4,000. However, a drop below $2,038 will invalidate this trend.