The price of Ethereum’s ether has hit a new all-time high above $1,430, partly thanks to the recent volatility seen in bitcoin’s price, which moved from $11,000 to a new high near $42,000, before plunging to $30,500 and recovering to $37,000.
The flagship cryptocurrency’s growing volatility, which according to CryptoCompare’s Bitcoin Volatility Index (BVIN) is up 51% year-to-date is believed to have driven investors to alternative cryptocurrencies, which helped the largest altcoin, ether, hit a new high.
According to Bloomberg, cryptocurrency enthusiasts have been encouraged by the comparative calm seen in BTC’s price recently, which over the last few days has been trading around the $36,000 mark, to chase momentum.
Vijay Ayyar, head of business development at crypto exchange Luno, was quoted as saying:
Bitcoin has been in a range for the past few weeks, which gives time for capital to rotate [to other cryptoassets].
Bitcoin’s use as a hedge against risks such as inflation, its growing corporate adoption, and growing interest in the market have helped the cryptocurrency’s price surge. Analysts at JPMorgan have said the $40,000 mark is key for BTC, flagging the risk of a further drop unless the crypto surpasses that mark again soon.
As reported, analysts believe BTC’s next move could make or break its bull run, based on Fibonacci retracement levels, which are horizontal lines that indicate where support and resistance are likely to occur. As for ETH, its new all-time high comes as the cryptocurrency’s scaling solution, Ethereum 2.0, makes progress.
The decentralized finance (DeFi) space has also been seeing its total value locked surpass the $25 billion mark, with protocols like Maker, Aave, Compound, Uniswap, Curve Finance, and SushiSwap having well over $2 billion locked in them.
On top of that, ether locked in the Ethereum 2.0 staking contract has effectively been removed from circulation until the network’s proof-of-stake upgrade launches. Over $3 billion worth of the cryptocurrency are now locked in it earning their holders interest.
Alex Krüger, a popular economist and trader, has revealed that the next levels to watch for Ethereum. These include the $1,500, $1,600, $1,920, and the $2,000 marks. The levels, he said, are Fibonacci extension, option strike prices, and round numbers.
Featured image via Unsplash.
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