Ethereum drives through $4,000 – but can it hold ground?
Ethereum continued its relentless upward movement by bursting through $4,000 today.
The world’s second-largest cryptocurrency moved into fresh all-time high territory with some conviction as it barely hesitated to cross the $4k line at, appropriately, 4am.
A rampant Asian market gave Ether the solid impetus it needed to stake a flag at $4,176 and claim a new peak for Vitalik Buterin’s brainchild.
Some of last week’s Champagne corks from the celebrations of punching through $3,000 have barely had chance to land, yet more look to be taking to the skies soon as ETH traders start to salivate at the prospect of reaching their most prized short-term goal… $5,000 by end of June.
READ MORE: Ethereum on track for $5,200, say experts
Only a few short weeks ago, the idea of Ethereum getting near $4k, let alone $5k by the close of Q2 in 2021 would have drawn wry sniggers from even the most dedicated followers of fashionable Ethereum.
Indeed, as Bitcoin was bobbing merrily above $60,000 a couple of months ago, there were whispers that cracks were beginning to show in Ethereum’s usability. Project after project seemed to be bleeding out of the platform as blockchain alternatives were quick to mop up the spoils on the crypto trading floor.
Ethereum, however, clearly wasn’t prepared to stand by and watch the rivets pop from the hull as the torpedo boats circled. Instead, the decks were manned and running repairs carried out as the decentralised dreams of its founder and fans were reaffirmed, and a course was chartered to pursue the giant dreadnought Bitcoin whose smoke stacks were in danger of disappearing over a distant horizon.
The gulf between the two has long been gaping, but the signs, sentiment and momentum seem to be filling Ethereum’s billowing sails right now.
It’s worth bearing in mind that Ether – the opensource blockchain’s native token – began this year on a mere $725 with little in the way of thought or deed that might dare to offer a dream of chewing through the four-figure wire.
Yet, with Christmas songs still rattling the recovering heads of New Year merriment, ETH managed its first foray above $1,000. By mid-February it had climbed beyond the summit of $2,000 before an almighty tumble in an overheated market sent it plummeting to $1,200 as negativity in Ethereum’s often complex structure began to set in.
READ MORE: Ethereum hits $3,000 with bigger market cap than Bank of America
The gap between first and second place had never been wider. A time for deep thought and contemplation was required in order for ETH to bounce back and lift itself out of the doldrums.
And that’s just what it did.
By the end of March, Ethereum had cemented its place above $2,000, solidifying its claim one step down from Bitcoin on the crypto podium.
What happened next, though, was quite remarkable.
Bitcoin’s steamrollering of the markets, fuelled by institutional investment, came to a shuddering halt like a tank running dry on diesel.
Mid-April signalled the return to an alt market, and ahead of the pack, leading from the front, came Ethereum.
The $3,000 mark was swallowed up only a week ago, $4,000 came only a few hours ago.
It begs the question: Can it hold?
Well, a glance over the charts would seem to say ‘yes’. The trading volume is high and enthusiastic. The market volume has rocketed $476.4 billion – a significant figure that brings it closer to the half-way mark of Bitcoin’s $1.1 trillion.
Market dominance is also shifting at a pace. Today, Ethereum claimed ground above 19 per cent. Bitcoin still, of course, holds most of the share – but it’s falling. Today, the original cryptocurrency’s slice of the cake shrank to below 44 per cent.