It has finally happened. After surpassing it several times last week, Ethereum has reached its highest ever level, setting a new record above $4,400.
This is a very good sign for a blockchain and its tokens, which, in our opinion, are unfairly the victims of a low-intensity attack campaign in the media, including the specialized press. $ETH, on the other hand, reacted – while it was still very early in the morning in Italy, the coin surpassed its old record.
This confirms a bullish market season for the altcoin sector as well. We can invest with eToro – click here to get a free virtual account with all top features available now – a single exchange for automated cryptocurrency trading, also offering the CopyTrader system – to copy the best or spy on how they trade in the market.
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New all-time high for Ethereum, confirming its position as the king of altcoins If we look at the ratio between the current price and the all-time high for all altcoins, the situation immediately becomes much clearer. Ethereum has surpassed the price level it reached during the previous bull run and before the major crash in May and June, while the rest of the sector, although highly capitalized, is still far from those levels.
The same can be said for Binance Coin, which, despite the excellent health of its reference exchange, is still far from its all-time high – over 20%, not to mention Ripple, but also the entire sector of historical altcoins like Litecoin and BCH.
Therefore, although Bitcoin led the way by returning to its historical highs before anyone else, only Ethereum has followed the old guard.
Great demand for DeFi protocols – and this is the first push for Ethereum When reading the same market data, i.e., the price developments of the past few weeks, another very clear fact emerges. This explains the market’s great interest in all the protocols that can offer solid infrastructure for decentralized finance, possibly including the NFT world.
This could explain the almost parallel trajectory of some competitors to the Ethereum network, such as Solana, and although they are not direct competitors, one of the largest L2s is $MATIC.
Where can Ethereum go in the coming days? Markets are in relative turmoil – and thanks to a mini-season of meme tokens – going through a phase of high volatility and interventions, even from large speculators.
Reading these situations is always very difficult – even if we were to seek support in technical analysis tools. We believe that the smartest question an investor could and should ask themselves in the next few hours is how long ETH’s bull run can last and whether the new all-time high will be a springboard or an insurmountable wall for the price.
For this purpose, a bit of fundamental analysis and analysis of blockchain events can be very helpful – and we can immediately point out that the same thing we saw with Bitcoin is happening, albeit for different reasons – namely, an exodus of $ETH from exchanges.
Of course, here the squeeze is also supported by issues like the burn introduced with the London upgrade, as well as staking for ETH 2.0, which is already among the top in the world for TVL, behind Solana and Cardano. With a now chronic shortage of ETH to pour into the market – even miners have had less and less for some time – selling pressure can be difficult to organize for the bears.
Of course, in a market situation like this, anything can happen – and for those who don’t want to ride the volatility and rapid price changes, it would be a good idea to pull back and keep an eye on our price targets for ETH. With price levels that some accuse of being fanciful, but towards which we are heading head-on.
