The Ethereum price surged to a record high as the market reacts to the surge in demand for the digital currency. ETH rose to an all-time high of $3,070, meaning that it has gained by more than 320% this year and by more than 1,400% in the past 12 months. Its market capitalization has also surged to more than $353 billion, according to data compiled by CoinMarketCap.
What happened: Ethereum is a blockchain project that was developed by Vitarik Buterin, Charles Hoskinson, and Gavin Wood, among others. The network allows people to build decentralized applications. In the past few years, it has become the biggest place where developers go to build. For example, it is the blockchain of choice of all the biggest DeFi projects like Uniswap, Maker, Aave, and SushiSwap, among others.
Ethereum price has also surged because of the rising popularity of Non-Fungible Tokens (NFTs) since it is the network of choice for their development. Most importantly, Ethereum price surged because of the Fed, which decided to leave interest rate decision unchanged last week.
In the past few months, I have accurately predicted the future trend of Ethereum prices. Last month, I predicted that ETH was on a path towards $3,000. This happened when the price surged to $2,500 and then crashed during the recent sell-off.
Today, looking at the daily chart, we see that the ETH price has been on a strong upward trend. It has risen for the past nine consecutive days. This has seen it move to the upper side of the ascending channel that is shown in orange. The price is also being supported by the short and long-term moving averages.
Therefore, in my view, we will likely see a short pullback as some bullish investors take profit. This will see it decline by double digits as bears target the lower side of the ascending channel. Still, this decline will be a positive thing as ETH remains on course to hit $3,500.
Follow Crispus on Twitter.
