After reaching its all-time high of $69,300, the crypto market suffered a sharp pullback yesterday, with the overall market decline, including Ethereum, exceeding 10 percent in just a few hours.
Today, however, we are seeing an impressive recovery, with Ethereum at the forefront. The price is currently hovering around $3,900, a high not seen since 2021.
It is not just the Ether price that is showing an upward movement; trading volume also sees a notable increase. This development underlines an undeniable increase in interest in Ethereum. Does this mean that Ethereum will soon break the psychological barrier of $4,000?
Why is the Ethereum price rising?
An important factor behind Ethereum’s strong position is the reduced availability of ETH on exchanges.
More and more Ethereum is being taken off trading platforms and transferred to long-term wallets. This indicates that investors are choosing not to sell their Ethereum tokens, but rather to hold them for the long term.
This phenomenon leads to a reduction in supply on the market, while demand remains the same or even increases. This results in a price increase, driven by the basic principle of supply and demand: when demand exceeds the tight supply, the price increases.
Furthermore, the massive purchase of Ethereum tokens by major investors contributes to this price increase. These investments significantly increase demand against unchanged or even declining supply, providing additional impetus to Ethereum’s upward price trend.
What can we expect from Ethereum?
There is a significant chance that, if sentiment in the crypto world remains positive, Ethereum will soon test the crucial $4,000 level. If Ether breaks this level, the price could quickly rise further towards its all-time high of $4,890.
Valid for 1 month: Grab your 20 Euro bonus now at Bitvavo
Are you about to discover the crypto world and are you considering buying Ethereum or another crypto? Then grab your chance now with this exclusive offer! Thanks to a special deal between Newsbit and the Dutch crypto exchange Bitvavo, our readers receive an exclusive offer
Only Available for 30 Days: register with Bitvavo via the button below and receive a welcome gift of 20 euros completely free. And that’s not all – you also don’t pay trading fees on your first 10,000 euros in transactions. Register now!
Source: https://newsbit.nl/crypto-analyse-ethereum-staat-op-de-rand-van-doorbraak-naar-4000/
