Ethereum 
$3,094 has once again surpassed the significant $4,500 mark, marking a notable moment after a prolonged period. Previously, cries of analysts predicting a fall to $500 were rampant, circulating fear amid the market. Yet, such volatility is inherent in the nature of cryptocurrencies. During bull runs, few are inclined to believe in a fall, and vice versa, yet the exaggeration remains constant on both sides. So, what fundamentally underpins this recent surge of Ethereum? And what are the expected scenarios for the altcoin bull market from now on?
Reasons Behind Ethereum’s Soaring Prices
It’s easy to enumerate the reasons behind a surge, yet there’s a significant deviation compared to past cycles. Previously, even one of these developments could ignite a bull market. Today, however, we find ourselves in an environment stimulated by at least six compelling reasons. For instance, how did the surge in 2021 begin?
Back then, essentially two factors were at play: NFT enthusiasm and the DeFi craze. This time around, the upswing is apparently due to these six substantial reasons:
- ETH ETFs have reached a daily net inflow of $1 billion.
- 401(k) plans now allow the inclusion of cryptocurrencies.
- Stablecoins reached a new ATH at $270 billion.
- The SEC announced that staking ETH would not be considered securities or investment contracts.
- The CLARITY Act will come into effect in October.
- Ethereum supply on exchanges is at an all-time low (supply constraint).
GENIUS could also be added, a remarkable law paving the way for further growth of stablecoins, most of which are based on the Ethereum network. Upcoming interest rate cuts starting in September, or the fact that Ethereum is part of the U.S. crypto stock initiative, are not included in this list. The projects of trillion-dollar giants on the Ethereum network, along with L2 solutions and others, are also excluded. Hence, the current ETH surge surpasses the 2021 hype and is being propelled by significant developments whose long-term impacts we are yet to fully witness. So, maybe $5,000 or even $8,000 isn’t too far-fetched.
Altcoin Bull Market and Upcoming Expectations
Under normal circumstances, the rise of ETH will continue. However, conditions are volatile and could swing unexpectedly given the unpredictable nature of influential global players. In a landscape where conditions can turn rapidly due to political unpredictability, staying abreast of the latest news is crucial. Utilizing the news section of applications like CryptoAppsy is therefore advisable for a more informed trading decision.
To appreciate the situation’s gravity, consider this: presently, 64 crypto treasury companies collectively hold over $16 billion in ETH, with total reserves surpassing 3.5 million. Furthermore, just yesterday, there was a $1 billion ETF inflow. This increase in ETFs occurs aside from reserves of publicly traded crypto reserve companies. Significantly, two companies applied on Friday and today for stock sales to purchase an additional $5 billion and $24.5 billion of ETH respectively, meaning they alone will acquire an extra $30 billion. This will elevate the total assets of 64 companies to $46 billion. The pace of growth is astonishing!
Good news is also emerging from the ETHBTC pair.
The level of 0.0375 was surpassed as of writing. With this resistance broken through, the target is now 0.04. This marks a return to the zone where the fall accelerated 250 days ago, with BTC currently way above its levels at that time. Should the second resistance also break, targets will be between 0.046 and 0.058 BTC. If BTC remains stable at its current price when this range is reached, ETH will have hit a new ATH in the dollar pair, nearing $6,000.
If the peak of 0.089 BTC seen in 2021 is reached again, ETH will be expected to soar to $9,600, thus painting a conducive backdrop for the altcoin bull market. Hopefully, the market can progress under “normal conditions” without unexpected disruptions.
