Ethereum (ETH), the second-largest cryptocurrency by market cap, is again moving towards $4000. The second largest cryptocurrency in terms of market capitalization has gained 6% within the last 24 hour, 5.5% over the week, 7.1% for the 14 day charts, 50.0% since August 20, and 60.5% overall. according to CoinGecko’s ETH data.
Why is Ethereum heading towards $4000?
The latest rally in ETH comes during a general market rebound. Bitcoin’s (BTC) price has returned to $116,000, a level it had previously reached. Also, the global crypto market is getting closer to $4 trillion. This is probably due to the President Trump’s decision. retirement funds to invest in crypto assets.
Trump also pushes for a rate reduction. Trump has appointed an aide to his administration on the Federal Reserve Board of Governors. Some predict a cut in interest rates for September 2025. Goldman Sachs and Wells Fargo predict a rate reduction of 25 basis points next month. It is possible that ETH, and other cryptocurrencies will see increased flows.
The rise of ETH is likely also fueled by the steady inflows from ETFs. BlackRock has been buying ETH at a substantial rate over the last couple of months. Corporate treasuries have also been hoarding ETH, BTC and other cryptocurrencies.
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According to CoinCodex ETH analystsEthereum will surpass $4000 on August 11, 2018. Platform predicts that ETH will continue to rise in the months ahead. CoinCodex forecasts ETH hitting a record-breaking $6353.11 high on October 19, 2018. To reach $6353.11 at current prices will require a 62.74% increase.
There’s also a possibility that ETH may face a slight correction within the next couple of days. Crypto market could be faced with significant challenges due to global trade conflicts and uncertainty in the economy. Tariffs had many effects on the stock market as well as crypto. What happens next is not yet known.
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Source: watcher.guru
