Ethereum Price Breaks Above $1400 – 3 Reasons Behind This Rally

Ethereum price has rallied above $1,400, outperforming Bitcoin in the last few weeks of January as momentum strengthens in 2021.

January 19, 2021 | AtoZ Markets – On Tuesday, January 19, the price of Ethereum, the second-largest cryptocurrency by capitalization exceeded $1400, setting a new all-time high (on the Bitstamp exchange).

Data: TradingView.

Ethereum price rallied to the $1300 level on January 10.

The historical records of the price of cryptocurrency recorded in January 2018 differ on different exchanges. The Block analyst Larry Cermak has compiled a list of major sites.

Skew analysts believe that the new maximum is already in the “zone of visibility”.

3 factors why Ethereum price is rising

Ether has been outperforming Bitcoin in the last few weeks as Ethereum’s momentum strengthens. There are three main reasons why ETH has been outpacing BTC throughout the past several days. The factors are Ethereum’s accelerating growth, the improving sentiment around DeFi, and BTC’s current period of relatively low volatility.

1# Ethereum daily transaction has grown

According to the latest data from Messari, the volume of daily transactions on the Ethereum blockchain reached a record $12 billion in January. The company calculates a moving average over the past 30 days. The indicator began to gain momentum sharply on the eve of the New Year. The growing volume of transactions on the Ethereum network is not the only positive factor.

2# DeFi sentiment

DeFi tokens have been surging rapidly as of late, led by majors such as Aave and SushiSwap. At over $24 billion, there is more capital locked across DeFi protocols than ever before, which signals massive demand. This is crucial for the momentum of Ethereum — and consequently its Ether token — because more and more apps and tokens rely on its network.

3# BTC is consolidating with low volatility

Throughout the past several days, Bitcoin has been mostly consolidating with low volatility allowing many altcoins to catch up. This has led the demand for altcoins with lower volume and liquidity to increase.

The Ether price rally coincides with what traders describe as “altseason,” a period wherein many altcoins rally in tandem especially when Bitcoin sees small price movements.

For retail and derivatives traders, the high volatility of the altcoin market makes smaller cryptocurrencies more appealing, at least in the near term, to trade over Bitcoin.

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  1. True Fibonacci Waves fan says:

    I think it is going towards 2800 by the end of the year, but it needs to test 750 first

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