Ethereum price bounced back in the overnight session as investors remained optimistic about the ecosystem. ETH is trading at $4,335, which is a record high. This brings the year-to-date gains to more than 480%, bringing its total market cap to more than $500 billion. The strong performance has also pushed the Ethereum Classic price up by more than 5%.
Ethereum news: Ether price surged, helped by the robust performance of the Decentralized Finance (DeFi) market. The total value locked in the ecosystem has surged to almost $90 billion, which is an excellent performance based on the fact that it was not in existence a few years ago. Maker, Aave, and Compound TVL has surged to more than $10 billion while more than 17 projects have a TVL of above a billion dollars.
ETH price is also rising as investors wait for the latest inflation numbers from the United States. Broadly, there are expectations that prices rose sharply in April because of supply shortages, higher commodities, and the recent stimulus. Still, many analysts believe that these prices will start declining in the next few months. Inflation is important for Ethereum price because of its impact on interest rates in the United States.
In my previous Ethereum forecast, I predicted that the coin’s price would surge to $5,000 in the near term. While this has not happened, the price is moving in the right direction. On the daily chart, we see several bullish signals. First, the price is above the moving averages, which is a positive factor.
Second, oscillators like the MACD and the Relative Strength Index (RSI) have continued to rise. While this is a sign that the prices are overbought, it also means that there is a bullish momentum. Third, the price is above the ascending black trendline. Therefore, the bullish trend will continue so long as the price is above the 50-day moving average. In my view, it is just a matter of time until the price rises to $4,500 and then $5,000.
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