Why Is Ethereum Going Up, and When Will It Hit $10,000?

Why Is Ethereum Going Up, and When Will It Hit $10,000?

Ethereum is going up and you might be wondering why. At above $3,500, Ether has gained about 50 percent in the past 30 days and almost 400 percent since the beginning of 2021. Many investors are eager to see Ether hit $10,000. Here’s Ethereum’s price prediction .

The Ethereum blockchain supports smart contracts and has become popular with developers building DeFi apps and creating NFTs (non-fungible tokens). The Ether token powers transactions on the platform. Solana and Cardano are some other crypto projects seeking to become the next Ethereum.

Why is Ethereum going up?

Ethereum’s latest spike comes after a software bug caused a fork in the blockchain, causing some investors to sell in panic and the crypto to fall. Ether is now rising as bulls take advantage of the pullback and accumulate the token.

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Source: CoinMarketCap

A major reason for Ether’s surge in 2021 has been excitement over DeFi and NFTs. Ethereum hosts many DeFi products and NFT marketplaces. DeFi products' adoption is increasing as people seek better alternatives to traditional financial services. Investor Kevin O’Leary of Shark Tank even predicts DeFi apps will replace financial intermediaries in a few years.

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A consensus bug hit #ethereum mainnet today, exploiting the consensus-bug that was fixed in geth v1.10.8. Fortunately, most miners were already updated, and the correct chain is also the longest (canon)

PSA: Update to v1.10.8! — M H (((Swende))) (@mhswende) August 27, 2021

Update on this: 3 pools seem to be have been mining on the wrong Geth version: @flexpool_io (who reported the issue 🙏), @btccom_official and @binance.

We are getting in touch with the two latter ones. https://t.co/Sfq8YJywF7 — Tim Beiko | timbeiko.eth (@TimBeiko) August 27, 2021

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DeFi that is where the #Crypto puck is going! https://t.co/XhVkD4MmyO — Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) May 19, 2021

Meanwhile, art collectors continue to pour millions of dollars into NFT purchases, boosting sales for NFT platforms such as Axie Infinity, CryptoPunks, and Art Blocks. Moves in the space by soccer star Lionel Messi and credit card company Visa have stirred more interest in NFTs.

NFTs, DeFi Boost for Ethereum Dims Clamor of Bitcoin Maximalists

(Bloomberg) – Surging demand for NFTs and DeFi apps is allowing backers of Ethereum to dampen the cacophony of Bitcoin maximalists who have long claimed that only the original cryptocurrency matters.

Ether, the native token of the most-used blockchain, jumped 36% in August, more than double the 13% return for holders of the biggest digital asset by market value during the same period. So far this year, Ether is outperforming Bitcoin by the widest margin going back to at least 2018, Bloomberg data show.

The Ethereum “community has taken up that mantle to a much louder degree and that sort of blockchain development is really having a bullish moment in crypto right now,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial.

Many analysts had projected that Ether would rally following a major software upgrade to the Ethereum blockchain in August. The enhancement, code-named London, trims the pace at which the supply of Ether tokens grows.

Ahead of the upgrade, many investors argued the reduction of the coin’s supply could result in higher prices due to increased scarcity. Others also said the supply could drop further once Ethereum moves to a different mechanism of verifying transactions, something that could happen in the first quarter of next year. This new verification system will use computers supporting the Ethereum network to stake Ether coins instead of miners in most cases.

“The innovation at play in the smart-contract arena had been defeating maximalist mantras for quite some time,” said Mati Greenspan, founder and CEO of Quantum Economics. Still, because a lot of the advancements – particularly in DeFi and NFTs –are so new, it’s difficult to say exactly how much more growth there will be or what other new sectors might arise, he said.

The case for Ether surpassing Bitcoin has been been a constant theme in crypto since the alternative blockchain was created. Bitcoin maximalists maintain that it remains the purest form of digital money and point out that the original cryptocurrency has a market value of about $900 billion, or more than double that of Ether.

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August marked Ether’s second consecutive monthly advance and its best monthly performance since April. The coin is up more than 350% this year, compared with Bitcoin’s 60% gain. On Wednesday, it rose about 5% to $3,558 while Bitcoin gained around 1% to $47,400.

“Ethereum is seen as a better store of value – that’s why it has been preferred by institutions for a while now,” said Matt Maley, chief market strategist for Miller Tabak + Co. “It is now becoming preferred among all investors.”

And it’s not just Ether that’s been in the limelight recently, said Ouellette. Solana and Cardano represent projects with a similar focus and both have rallied.

Among analysts and investors, there’s little consensus as to what’s driving parts of the frenzy for smaller or alternative coins. Some posit that speculators are moving from the mainstays to newer, more exciting offshoots, as they often do after big runs. Others see a world awash in cash and ultra-low rates, which ultimately pushes investors toward ever-wonkier assets.

Wilfred Daye, chief executive officer of Enigma Securities, said Ethereum is the fabric of the tokenized economy and it has a deeply rooted and solidified programmer community. From a trading perspective, “ETH has higher volatility than Bitcoin and similar liquidity profile as Bitcoin,” he said. But, “in the long run, ETH has a real chance of outperforming.”

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Ethereum Is Breaking Out — How Far Can It Rally Now?

Ethereum is hitting its highest level since May and has almost doubled from the July low. Here’s how to trade the potential breakout now.

In mid-July, cryptocurrencies like Bitcoin and Ethereum looked as if they were going to roll over.

But at the eleventh hour the group found its footing and reversed course. This kept the charts intact and truly saved the bulls.

What we’ve seen since is a 76% rally in Bitcoin at the recent high and a 93% rally in Ethereum at Tuesday’s high.

The rally off the July lows came during “The B Word” conference, which featured speakers like Ark’s Cathie Wood, Tesla’s (TSLA) - Get Tesla Inc Report Elon Musk and Square (SQ) - Get Square, Inc. Class A Report and Twitter’s (TWTR) - Get Twitter, Inc. Report Jack Dorsey.

At the time, I asked if this trio could save Bitcoin. For now the answer is a resounding “yes.”

While Bitcoin continues to struggle with the $50,000 level, Ethereum as we speak is trying to break out. It’s hitting its highest level since May, causing many investors to wonder just how far this rally can go.

Let’s look.

Trading Ethereum

Daily chart of Ethereum. Chart courtesy of TrendSpider.com

Ethereum enjoyed a bullish explosion, rallying in 16 of 18 sessions following that conference.

Amid one of those declines, Ethereum lost just 0.22% that day. The other dip gave investors a magnificent buying opportunity.

More recently though, Ethereum struggled with the $3,300 level and the 61.8% retracement near $3,355. For almost the entire month now, Ethereum has been consolidating after that powerful rally.

With Tuesday’s action, the crypto jumped to a high of $3,475 — a clear breakout of the two levels mentioned above.

But it’s below $3,400 now and Ethereum’s gains are fading. I would love to see a close over $3,000 and the 61.8% retracement, as well as the prior August high near $3,381.

If it can do that, the bulls will be in control, although they’ll have to prove themselves.

It sets Ethereum up for a potential monthly-up rotation in September if it can clear $3,475, (assuming that is the high for the day).

If we can get an upward break of the recent range, it could put the 78.6% retracement on the table near $3,800. Above that and $4,000-plus is in play.

On the downside, watch $3,300. Back below that and the 10-day and 21-day moving averages will be play, followed by uptrend support. Below $3,000 and we’ll have to keep an eye on a deeper correction.