The Ethereum price has been on a strong rally since the start of the month. The ETH token has jumped more than 22% in the last seven days. It has been among the best performing digital currencies after swinging past the crucial level at $4,000. Other high-yielding coins include Solana, Polkadot, Chainlink, Filecoin, among others. Ethereum has a total market capitalization of $455.59 billion.
Why is ETH Rallying?
Ethereum has been in the spotlight since the start of September after hitting a multi-month high. The ETH price jumped 4.02% on September 3, breaking the $4,000 crucial barrier. However, it remains below its highest level this year of $4,378, achieved on May 12.
Several factors are driving Ethereum’s growth. First, non-fungible tokens (NFTs) have been booming. The surging demand for NFTs and DeFi apps has helped in boosting Ethereum’s dominance in the overall crypto market.
The native token of the world’s most-used token, Ether, jumped more than 36% in August. This was more than the 23% climb by the biggest digital asset in the same period. According to data by Bloomberg, Ether is outperforming BTC by the widest margin since 2018.
Second, the overall crypto market has been on an upward trend. According to data by CoinMarketCap, the global crypto market capitalization has increased from $1.57 trillion a month ago to $2.34 trillion.
While the cryptocurrency market is unpredictable, investors seem optimistic about the Ethereum price. However, the world’s leading altcoin faces challenges like slow transactions and high gas fees ahead of the ETH 2.0 upgrade.
Ethereum Price Outlook
The daily chart indicates that the Ethereum price has been on a strong bull run for the past few weeks. At the time of writing, it was trading 1.05% down at $3908.87.
It has been trading above the 25-day and 50-day exponential moving averages. It is also moving above the 50-day moving average.
Therefore, with the ETH 2.0 upgrade, the ETH price is set to continue rallying in September. A move past the $4,000 level will have bulls targeting this year’s high at $4,378.53. However, this view will be invalidated if the price moves below the crucial level at $3,400.