What is Next for Ethereum after the Recent 18% Spike?
Ethereum (ETH), the second largest crypto asset by market capitalization, took the altcoins market by storm when it orchestrated a rally that saw it appreciate by about 18% in the past 24 hours.
The coin’s significant price surge attracted considerable attention among crypto enthusiasts, as speculations about an imminent altcoins bull season seem to be making rounds within the crypto community.
According to Ethereum’s market readings on CoinGecko, a renowned digital assets price tracking site, ETH price has successfully broken through $3,650 for the first time since April 9.
At the time of press, the Ether-based token is changing hands at about $3,678, boasting a 24-hour trading volume of about $36.1 billion, a market cap of roughly $442.1 billion, and a fully diluted valuation (FDV) of around $442.1 billion, unifying the coins market cap to FDV ratio.
In the past 24 hours, ETH price registered minimum and maximum prices between $3,078.48 and $3,710.31, respectively. Its 7-day price reading recorded an impressive 26.4% increment, fluctuating between a $2,873.99 minimum price and a $3,699.39 peak price.
Possible Ethereum (ETH) Surge Catalysts
Notably, the price jump witnessed in ETH price movements followed recent speculations about the possibilities of a spot Ethereum Exchange Traded Fund (ETF) approval by the United States Securities and Exchange (SEC) happening soon.
Ethereum Surges 17% as Bloomberg Analysts Raise Spot ETH ETF Approval Odds to 75%#ethereum #ETHTOKEN #Crypto https://t.co/88Sgi5IZzH
— Crypto2Community (@Crypto2Comm) May 21, 2024
In addition, there are chances that the bull might be shifting hands slightly from the flagship cryptocurrency, Bitcoin (BTC), to the altcoins, as most crypto asset price charts are currently reading green across several market indices.
Also, the recent price trend corroborates the assertion in our previous news article about a whale investor shifting 15,000 ETH to a Kraken wallet address. Notedly, we hinted that the trader’s action would not elicit any significant market reversal; ETH’s market activities are proving the claim right and signaling that whales are not dumping their ETH tokens.
Ethereum Aiming to Attain a New ATH?
Following its recent market actions, Ethereum is trading at a price level about 24.6% away from reclaiming its estimated $4,878 market all-time high (ATH) attained in November 2021.
Analyzing Ethereum’s price chart, spanning three years on Coincodex’s representation, the closest ADA has ever gotten to revisiting its peak price was when it struck $4,022 in March 2024. Notedly, the pathway to clinching the $4,022 price level mirrored a gradual price appreciation journey, beginning in September 2023, with ETH selling about $1,500.
$ETH broke out from the falling wedge, and instantly took off!
On its way to the first target: $4200.
Break that, and new all-time highs are next. pic.twitter.com/fcvKg9lWzK
— Jelle (@CryptoJelleNL) May 21, 2024
With a potential bull season in sight following the conclusion of the Bitcoin halving event, it is safe to say that Ethereum would mirror a more rapid price expansion journey, which invariably implies that breaking above its ATH will happen in a matter of days, should the coin sustain current momentum.
Related: Ethereum Price Prediction 2024 – 2040
Implications of Ethereum’s Current Run for The Entire Crypto Market
In the past few months, Bitcoin appears to be recording more significant market statistics relatively higher than other coins, which saw it exceed its previous approximated $69,000 peak price to attain a new ATH of about $73,628 in March 2024. Currently, BTC is trading at $71,105%, about 3% away from revisiting its peak price.
While BTC was basking in its newly found momentum, altcoins have waited patiently for the tide to swing in their favor, which seems to be happening now, considering Ethereum’s present run.
Altcoin enthusiasts would hope that Ethereum’s recent price actions do not turn out to be a mere fluke or a transient phase as it boasts the potential to reward many altcoin investors significantly if sustained.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Chinedu Agbakwusi
Chinedu Agbakwusi is a news writer and editor for Crypto2Community. He is a crypto enthusiast with vast experience across several crypto-related projects and platforms. Chinedu has been following the development of the crypto market for several years, and he is optimistic about its potential to democratise the global financial system. He hopes to be a reliable plug for reporting trends and breaking down complex concepts to his readers. Agbakwusi's previously written for several crypto news including Times Tabloid, UPay, while also contributing over the years to many others leading media publications.
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