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Ethereum Hits All-Time High Above $4,000: What You Should Know

The second-largest cryptocurrency by market capitalization, Ethereum (ETH), crossed the psychologically important $4,000 barrier minutes before press time in the last hours of Sunday.

05/10/2021 00:26

The second-largest cryptocurrency by market capitalization, Ethereum (ETH), crossed the psychologically important $4,000 barrier minutes before press time in the last hours of Sunday.

What Happened: ETH touched an all-time high of $4,067.85 on Sunday night. At press time, the cryptocurrency was trading 3.86% higher at $4,047.46. ETH has rallied 32.77% in a seven-day trailing period.

Bitcoin (BTC), the top cryptocurrency by market cap, trailed both daily and weekly returns of ETH. For the week, BTC is up 2.47%, and on a 24-hour basis, it was up 1.22% at $59,456.33.

The difference is starker when it comes to year-to-date returns. While ETH has surged 443.73% since the year began, BTC is higher by 103.97%.

Why It Matters: Andy Swan, co-founder of consumer insight data firm LikeFolio, noted the flow of funds from Dogecoin (DOGE) to ETH, which he called “insane.”

DOGE traded 2.96% lower at $0.52 at press time. The meme cryptocurrency fell by as much as 30% hours after Tesla Inc (NASDAQ:TSLA) CEO Elon Musk’s appearance on “Saturday Night Live” where he mentioned the coin several times.

Digital investment company Magnetic’s co-founder Megan Kaspar who predicted a previous spike of ETH to the mid $3,000 level has upped her price target.

See Also: Why Is Ethereum Classic Surging, How Is It Different From Ethereum?

Kaspar now predicts ETH will now move to the $8,000 to $10,000 price range by the year-end, reported Yahoo Finance.

The boost in ETH was partly fueled by the Decentralized Finance or DeFi arena, which also led to the rise of several competing and complementary coins such as Uniswap (UNI), AAVE (AAVE), and Polygon (MATIC). 

Read Next: Why Is Dogecoin Refusing To Budge As Elon Musk Gives One Push After Another?