The price of Ethereum (ETH / USD) surged over the weekend as cryptocurrency prices rose. The currency rose to $ 3,340, which was an important resistance level. Its total market capitalization also rose to more than $ 389 billion.
Ether rally continues
Ethereum prices jumped as Bitcoin and the other altcoins maintained their bullish momentum. The most important milestone was that Bitcoin managed to move above the key resistance level at $ 50,000.
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In most cases, Bitcoin and Ethereum have a close correlation. In total, the market capitalization of all cryptocurrencies tracked by CoinMarketCap jumped to more than $ 2.2 trillion.
Ethereum also jumped as the decentralized finance (DeFi) market remained vibrant. In recent days, the industry’s total locked-in value has risen to more than $ 83 billion.
This growth has been led by key DeFi platforms such as Aave, Compound, and InstaDapp. It is remarkable as the TVL has more than doubled in recent months.
The largest DeFi applications are built using the Ethereum network. This is even when the ecosystem faces significant challenges, such as slow speed. Still, with the network developers transitioning to a proof-of-stake ecosystem, there is a chance that more people will continue to develop using the network.
Ethereum’s price also rose due to the relatively weaker US dollar. The dollar index fell back in early trading as investors switched to other currencies. The DXY gain was the first in about 6 days. In most cases, cryptocurrency prices tend to be inversely related to the US dollar.
Meanwhile, the price recovered after PayPal announced plans to offer cryptocurrency products in the UK. The company announced that customers with verified accounts will have the ability to buy, hold and sell cryptocurrencies for the first time. Initially, the product will support currencies such as Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
Ethereum price prediction
The ETH price maintained its uptrend during the Asian session. This led the price to major resistance, where it has struggled to move above it several times before. It also rose above the 25- and 50-day moving averages, while the MACD indicator continued to climb.
Therefore, the pair is likely to keep rising as long as the bulls can push it above this resistance. If this happens, the next key resistance level to watch will be $ 3,500. This is in line with ETH’s previous forecast.
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