The Ethereum (ETH) price action is enjoying the strongest bullish breakout trend since October of last year. Over the past week, the world’s second-largest cryptocurrency moved higher, buoyed by increasing buying pressure. The altcoin finally managed to break through the $3k barrier a couple of hours ago.
Ether Gains Financial Momentum Over Institutions
ETH has jumped nearly 10% in the weekly chart, reaching a high near $3,080 on Thursday, per data from Coinmarketcap. The upside move has seen Ether’s market capitalization soar past the $366 billion mark, per the latest data from CompaniesMarketCap.com.
Just a week ago, the market cap of Ethereum stood at $331 billion, meaning it has gained over 10% in a relatively short time. Ether’s market worth has surpassed some of the world’s largest financial institutions, including MasterCard ($337.1B) and Bank of America ($347.5B).
Over the past month, the global economy has endured some turbulent times, with rising inflation and conflict in Europe causing fear and uncertainty across financial markets. The turmoil has highlighted the need for investors to diversify their portfolios with stateless, decentralized assets like cryptocurrencies.
Ethereum has been one of the primary beneficiaries of the growing appetite for exposure to digital assets, evidenced by its recent bullish price action.
What Is Behind the Ethereum Market Cap Surge?
Ether, the leading altcoin in the crypto sphere, surmounted stubborn resistance and started trading in the green a week ago. The move higher was catalyzed by an influx of more than $20 billion to the Ethereum market value in seven days, with most of the gains coming from a resurgent DeFi market.
Crypto analytics firm Santiment recently highlighted that the number of daily active addresses on the Ethereum network has remained stable over the past few months. The programmable blockchain’s utility hasn’t suffered despite mounting macroeconomic-driven nervousness, indicating that investors remain bullish about the project’s prospects.
Ether may continue to see more gains as retail and institutional investors focus on exciting progress coming to the smart contract blockchain this summer. In mid-March, the project core dev team made a significant step towards the shift to Ethereum 2.0 by successfully testing a merge between the PoW and PoS chains.
The Path Forward for the ETH Price
Now that the ETH bulls have managed to reclaim significant support, market participants will be debating whether to expect a higher price target or not. Several respected traders and analysts have weighed in on the path forward for the world’s second-largest digital asset.
Crypto analyst Michaël van de Poppe tweeted that he expects further upside to the $3,125 level if the bulls hold on to crucial support. Meanwhile, one pseudonymous Twitter user shared a more measured approach to the ETH price trajectory. He posted that investors should expect higher lows and higher highs before the popular coin makes any decisive moves.
Another trader known only as ‘Chartpunk’ isn’t so optimistic about a continued ETH price uptrend in the short term. In a recent Twitter post, the analyst cautioned his followers to stay on the sidelines of the overheated market and wait for the retest of the entry zone around $2,975.