Ethereum price rose by 5% today to reach an all-time high of $2,074 as ETH continued its bullish runs.
It’s been a very good week for the leading altcoin as Ether price rose by 18%. This was partly due to the announcement that Visa is offering crypto transactions on the Ethereum blockchain. In 2021 alone, ETH price has risen by almost threefold.
Earlier this week, Visa announced that it was working with Crypto.com to settle crypto transactions in the stablecoin USDC on the Ethereum blockchain.
A symmetrical triangle breakout pattern was observed on ETH daily chart indicating that the several weeks of consolidation may have come to an end and an uptrend is setting in. in the short term, seasonality is in favor of ETH over Bitcoin.
And according to a crypto analyst, Timothy Peterson, ETH has performed better than Bitcoin every May till now.
Reasons Behind ETH Price Rise
The surge in ETH price should not go unnoticed. The price rise is fuelled by growing demands in about three areas: decentralized finance (DeFi), the Chicago Mercantile Exchange (CME) that would focus on the ETH market and lastly Ethereum 2.0 staking.
With the number of applications that run on Ethereum growing steadily, Ether is the default crypto for transaction settlement for such apps. Ethereum 2.0 staking is another factor contributing to the rise in ETH price. About $6 billion is locked on the ETH 2.0 blockchain for the next 12 months.
Finally, the CME launched a futures contract that would focus on the Ethereum market. Within one week of its launch, it had over $160 billion in total volume. Been one of the most trusted and oldest exchanges in the United States, this is an indication of the rising institutional adoption.
