No 2. cryptocurrency ethereum soars to record high as bitcoin rally continues

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Ether, the world’s second-largest digital currency, hit a record high on Thursday, driven up by the continuing rally in bitcoin.

The price of ether hit $1,918.52 during morning trade in Asia but has since pared some gains, according to CoinDesk data. It was trading at $1,883.58 at 12.14 p.m. Singapore time, up around 8%.

Ether has seen a year-to-date price rise of 160% compared to bitcoin’s 78% surge in the same period.

But it is the rally in bitcoin — which surpassed $52,000 for the first time on Wednesday — that’s helping to push up ether as well.

“The ether slingshot is in motion, with the number 2 coin looking cheap and posed to surge relative to bitcoin’s $52k level,” Jehan Chu, co-founder of cryptocurrency focused venture capital and trading firm Kenetic Capital, told CNBC.

Ethereum Price Prediction: Is ETH Heading to $2,500?

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Ethereum price soared to an all-time high of $1,922 as investors continued to pile-into cryptocurrencies. ETH price has already jumped by more than 2,000% from its lowest level in 2020. This surge has brought its market cap to more than $217 billion. On the other hand, Ethereum Classic price has risen by just 300%, bringing its market cap to $1.79 billion.

Ethereum vs Ethereum Classic chart

What happened: Ethereum price has jumped by 160% this year helped by three main factors. First, the ETH 2.0 upgrade that started last year is ongoing and analysts believe that it will improve the network. It will achieve this by shifting from proof-of-work (POW) to proof-of-stake (POS) and help it build an edge against other fast-rising alternatives like Solana.

Second, ETH price has risen because of the rising adoption of Decentralized Finance (DeFi). In less than two years, the total value locked in DeFi has risen from less than $1 billion to today’s $42 billion. This is important since most DeFi projects are built on Ethereum.

Third, with Ethereum trading at less than $2,000, many investors view it as a good alternative to Bitcoin. This is especially true among retail traders.

Fourth, the price has risen because of the recent decision by CME to launch futures. This allows more institutions to invest – and short – the currency. Finally, and most importantly, the ongoing fiscal and monetary policy in the United States has incentivised a rush to risky assets by most investors. In fact, Ethereum price could continue rising if Congress passes the upcoming $1.9 trillion package.

Ethereum price forecast

In my last prediction, I wrote that the ETH could rally to $2,000 soon.

The daily chart shows that the ETH price has been on a steady uptrend in the past few months. The price remains above all moving averages while other indicators like accumulation and distribution show that there are still buyers in the market. Therefore, in the near term, I suspect that the price will continue rising. In fact, we should not rule out another rally to $2,500 ahead of the new stimulus package.

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ETH price chart

Ethereum Price Chases $2,000 in Latest All-Time High Push

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After a week of largely sideways trading, Ethereum prices finally broke out during Thursday’s Asian trading session.

According to charts by Tradingview citing prices on Coinbase, ETH prices hit an all-time high of $1,920 a few hours ago. Since then they have retreated slightly to trade at $1,895 at the time of press.

The move marks a gain of 8.5% on the day as both ETH and BTC notch up new highs. Bitcoin’s ATH came at the same time when it touched $52,675 according to Binance prices on Tradingview.

Ethereum’s gains have been greater than Bitcoin’s over the past 24 hours as it has not moved a great deal since it first topped $1,800 on Feb. 9.

$BTC over $50k$ETH over $1900 Memes, NFTs, and Small Caps with absolutely no fundamentals ripping to new highs …What a time to be alive — Josh Rager 📈 (@Rager) February 18, 2021

The Path to $2,000 Ethereum

Ethereum prices are now just 5.2% away from the psychological $2,000 level and it seems so long ago that it first broke the $1,000 barrier back in January 2018. Its all-time high of $1,425 came just a week after that and it did not stay there long.

2018 saw Ethereum prices collapse almost 95% to bottom out at around $80 in December of that year. It spent the next 18 months at lows between $100 and $270 with a brief spurt above that in June 2019.

Ethereum only really broke out of its long bear market in late July 2020 when it topped $400 for the first time in two years. The DeFi boom of that year drove demand for ETH even higher as did the highly anticipated launch of the ETH 2.0 Beacon Chain on December 1. Staking has finally been enabled by Coinbase which may have driven the recent momentum.

By the end of the year, ETH was trading at around $700. In the eight weeks since then, prices have surged a monumental 170% to today’s levels.

Crypto Market Cap ATH

The two highs for the two top assets have driven total market capitalization to a new peak of $1.62 trillion according to Coingecko. It has over doubled since the beginning of the year and is now almost double the previous 2018 peak of $830 billion.

Other big movers on the day of new highs include Cardano cranking 12% to reach $0.94 as its ‘Mary’ upgrade nears, Binance Coin powering a monumental 32% on the day to hit $170, and Litecoin adding 12% itself to reach $235.

Stellar, Uniswap, Aave, Monero, and NEM have all made double-digit gains today.

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