Why Is Ethereum Price Going Up Today?

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The crypto market is surging today with the majority of the coins gaining up to 20%. The rise in prices is linked to various factors like Bitcoin’s rise above $100,000 and Ethereum’s recent Pectra upgrade among others.

Ethereum led the surge with a 20% surge, while XRP, Solana, Dogecoin, and Cardano are all following with 5-7% gains.

Ethereum Hits $2000

Ethereum saw its biggest gain since 2021 as it crossed the $2,000 mark. This rise follows Ethereum’s Pectra upgrade, which went live yesterday. 

The Pectra Upgrade is its biggest since the 2022 Merge, which has brought some major changes. It has increased the staking limit, improved the wallet usability with smart contract features, and implemented nine other EIPs

Ethereum’s on-chain metrics also look strong, as its total value locked rose to $57.9 billion, as per data from DefiLama. Its daily transactions also grew 22% over the last month. But a 95% drop in Ether’s fees shows that Ethereum’s rise to $3,000 might take longer than traders expect. Its network activity has been weaker since 2021, so a full recovery may still be far away.

Key Levels To Watch

Analysts are predicting that Ethereum could surge up to $3,000, with some even expecting it to hit as high as $3,500 in the future. 

Analyst Ali Martinez has pointed out that Ethereum’s big hurdle is at $2,380. It is struggling to break past this level, where it has faced tough resistance in the past. If it manages to break through that level, then it could spark a fresh rally. 

Analyst Michaël van de Poppe noted that Ether’s recent jump above $2,100, a $300 increase in just one day, is a significant move. Expanding liquidity, the business cycle, and easing fiscal policies are acting as major tailwinds for the broader crypto market and Ethereum.