Despite the recent price crash in the cryptocurrency market, we have seen how Ethereum (ETH) was moving higher on a daily basis. The digital currency surpassed its all-time high and in some exchanges, it was traded above $4,400 for a short period of time. But could Ethereum move higher and hit $5,000 per coin?
Could Ethereum Move Towards $5,000?
Ethereum investors are waiting for the recent crash to pass in order for Ethereum to continue moving closer to $5,000. This might not be something crazy for the digital asset, which has been in a bull market for several months.
There are many things that we should know in order to understand the behaviour of this virtual currency. The first thing to note is that the whole ecosystem is in a bull market. During bull markets, most of the assets go higher over time, even if there are corrections along the way.
But there are two important things related to Ethereum that show us that the virtual currency is moving forward. One of them is related to Ethereum 2.0 and how this could be a massive improvement to the Ethereum network that has been struggling to process a large number of transactions.
With Ethereum 2.0 and moving to a Proof-of-Stake (PoS) consensus algorithm, it could become very efficient to process transfers, making the network faster and easier to use for individuals all over the world.
The second thing that we should mention about Ethereum is related to decentralized finance (DeFi). This industry has been growing for several years now and the Ethereum ecosystem was the network that hosted most of the new projects that were growing the DeFi ecosystem on Ethereum.
During a conversation with UseTheBitcoin, Greg Waisman, the co-founder and COO of the global payment network Mercuryo, explained:
“Its growth is associated with a lot of things, including the long-awaited Ethereum 2.0, but also, and in much greater regard, the DeFi sector’s own expansion and growth. The coin’s dominance climbed up to 18%, and its price spike is signaling that blockchain-based apps and protocols are finally being acknowledged and adopted.”
He then shared with us his price prediction for Ethereum, saying that it could go up to $5,000 “unless something unexpected disrupts its progress.” We have recently seen how Elon Musk’s comments pushed the cryptocurrency market lower. Due to this reason, Bitcoin fell below $48,000 and other digital assets followed the same path. Ethereum, instead was traded close to $3,700 per coin.