Ethereum cracks US$1,000 on way to all-time high

Ethereum (ETH) cracks US$1,000 on way to all-time high

Ethereum is taking off and is making great strides towards an all-time high. The upward trend is being driven by a host of different indicators.

Bitcoin is not the only cryptocurrency to have made a considerable leap in recent weeks. In the slipstream of the largest cryptocurrency, Ethereum has also steadily gained ground Bitcoin Profit and on Monday night broke through the 1,000 US dollar mark for the first time in almost two years with a daily increase of 29 per cent. In a weekly comparison, the Ether price recorded a plus of 65 per cent and rose to 1,044 US dollars at the editorial deadline.

Ethereum price in the weekly chart

The rapid price explosion is illustrated particularly clearly by the recent sharp rise in market capitalisation. In the last 24 hours alone, the market capitalisation of Ethereum has risen by 40 percent from 88 to currently 125 billion US dollars. At its peak, the total value of all Ether was 132 billion US dollars in the early hours of the morning, according to Tradingview, and thus only 8 billion US dollars below the all-time high of January 2018.

Ethereum is thus seamlessly continuing the upward trend of recent months. To put this into perspective: exactly one year ago, the Ether price stood at around 133 US dollars. Within one year, Ethereum has thus gained almost 1,000 US dollars in value.

Ethereum pulls altcoins along

The upswing in the crypto market is currently particularly evident in the altcoins. While Bitcoin is taking a breather, the majority of the altcoins can clearly increase in value. The top 10 largest cryptocurrencies have posted weekly price gains ranging from 26 per cent for the „tail light“ Chainlink (LINK) to 98 per cent for Polkadot (DOT). Only the Ripple coin XRP continues to struggle with considerable price losses and slips by 15 percent in a weekly comparison.

The fact that XRP has come into the crosshairs of the Securities and Exchange Commission (SEC) could play into Ethereum’s favour at the moment. When it became known in mid-December that the US Securities and Exchange Commission had charged Ripple with issuing unregistered securities, the XRP price took a nosedive. The market capitalisation of the (still) fourth largest cryptocurrency has since collapsed by 15 billion US dollars to currently 10 billion US dollars. The Ether market capitalisation has risen by 50 billion US dollars in the same period. It is not unlikely that investors will switch their investments in view of the approaching XRP collapse and sell their XRP holdings in favour of Ether purchases. Thus, XRP could soon be caught up by its direct pursuers Litecoin (LTC) and Polkadot (DOT) and eventually relegated to the back ranks of the top 10 coins.

Watch out, the big ones are coming

Moreover, Ethereum, like Bitcoin, is benefiting from an influx of institutional investors. Since the world’s largest futures exchange, the Chicago Mercantile Exchange (CME), announced in December that it would launch futures on Ether from February this year, the second-largest cryptocurrency has been on a steep growth curve. With the influx of professional investors, big money is finally finding its way to Ethereum and could turn out to be a price driver in the coming months.

But it is not only big money that could lead Ethereum to new shores. Last but not least, more and more integrations in decentralised financial applications (DeFi) ensure a persistently high demand for Ether. As the following chart from Glassnode shows, around 16 percent of the total Ether supply is currently integrated into smart contracts, and the trend is rising.

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