The Ethereum price has been on a strong rebound since mid-July, jumping more than 131% from its lowest level in July. The ETH price has jumped more than 36% in August and more than 429% since the start of the year. Ethereum has a total market capitalization of $457 billion.
ETH Is Rallying
In the past seven days, Ethereum has been among the best performers in the crypto market. It has jumped more than 20% in the past week. Other virtual coins that have been rallying include Solana, Polkadot, Chainlink, Filecoin, Theta, FTX token, among others.
There are several catalysts behind Ethereum’s rally. Among the reasons is the booming demand for NFTs and DeFi apps. The surging demand for non-fungible tokens (NFTs) and DeFi apps has helped propel the demand for the Ether token.
Ether, the native token of the most used blockchain in the world, more than doubled the returns by the biggest digital asset in August. So far in 2021, Ether has been outperforming BTC by the widest margin since 2018.
The launching of the London hard fork also played a key role in boosting the Ethereum price. The software update launched on the Ethereum blockchain in August trimmed the pace at which the Ether tokens’ supply grows.
The overall growth in the crypto market has also boosted the rally in the ETH price. The global crypto market capitalization currently stands higher at $2.35 trillion.
While high gas fees and slow transaction fees remain a major challenge for the world’s biggest altcoin, investors remain optimistic ahead of the major ETH 2.0 upgrade.
Ethereum Price Technical Analysis
The daily chart shows that the Ethereum price has been trading sideways for the past three days, following its jump to a multi-month high over the weekend. However, it remains above the 25-day and 50-day exponential moving averages. Its Relative Strength Index (RSI) has been moving higher. Nevertheless, it is 1 point closer to the overbought region, hinting at an imminent sell-off period.
Therefore, the ETH price is likely to continue with its bull run in September as bulls eye the $4,000 level. On the flip side, a move below $3,400 will invalidate this view.