Ethereum’s price has risen by 4% and is currently trading above $1,880 with positive signs above the $1,850 resistance zone. For the price to continue rising, ETH must clear the $1,920 resistance level. It has formed a base and recently saw a fresh increase above the $1,820 resistance, with the next major resistance levels near $1,930 and $2,050. However, if it fails to clear the $1,920 resistance, a downside correction may occur with initial support near the $1,900 level and the next major support near the $1,880 zone.
This article originally appeared on www.newsbtc.com
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has been steadily recovering from its May lows, and analysts say it is gearing up for another lift-off, with a target of $2,000.
The Ethereum price fell sharply in May, along with other cryptocurrencies, as Elon Musk’s tweets and China’s crackdown on mining contributed to a widespread market sell-off. Ethereum lost more than half its value, dropping from an all-time high of $4,356 on May 12 to a low of $1,728 on June 22.
However, since then, the Ethereum price has been on the rise again, and at the time of writing, it stands at around $2,693. Analysts believe the recovery is set to continue, with some predicting that Ethereum could soon surpass its previous all-time high.
One of the main drivers of the Ethereum price is the growth of decentralized finance (DeFi) applications on the Ethereum blockchain. DeFi is a rapidly evolving ecosystem of decentralized applications that enable users to borrow, lend, trade, and invest in cryptocurrencies without intermediaries.
The DeFi market has been booming in recent months, with the total value locked in DeFi protocols rising from around $1 billion in June 2020 to over $80 billion in June 2021. This growth has been fueled by the explosive demand for decentralized exchanges (DEXs), yield farming, and other DeFi apps.
Ethereum’s dominance in the DeFi space has been increasing as well, with most of the top DeFi protocols built on the Ethereum blockchain. As more people use and invest in DeFi, the demand for Ethereum increases, which could drive up its price.
Another factor supporting the Ethereum price is the upcoming Ethereum 2.0 upgrade, which will transition the blockchain from a proof-of-work to a proof-of-stake model. This upgrade will bring significant improvements to the network’s scalability, security, and sustainability, which could in turn attract more users and investors.
Furthermore, Ethereum’s adoption as a platform for non-fungible tokens (NFTs) has also been a significant driver of its price. NFTs, which are unique digital assets that can represent anything from art to music to video game items, have exploded in popularity in recent months, with many high-profile sales hitting the headlines.
Ethereum’s ability to support these NFTs has raised its profile, especially with artists and creators who are looking for a way to monetize their work in the digital age. This demand could help boost the price of Ethereum further, as more people flock to the blockchain to buy and sell NFTs.
In conclusion, Ethereum’s recovery from its May lows is not over yet, and the cryptocurrency is gearing up for another lift-off to $2,000 and beyond. The growth of DeFi, the upcoming Ethereum 2.0 upgrade, and the adoption of NFTs all signal a bright future for Ethereum, and investors would do well to keep an eye on this promising blockchain.