Ethereum blockchain’s native coin, ETH, has finally managed to breach the resistance level at $650. Immediately after that, the coin skyrocketed to $700, breaching this level for the first time since 2018. With that feat, the coin finally managed to get halfway to its historical all-time high of $1430.
ETH price hits 50% of its ATH
Ethereum (ETH) has performed well over the last several weeks, although it did struggle with a strong resistance at $650. Now, the resistance has been broken, and the coin’s value is approximately 12% higher than it was on December 1st of this year.
Ethereum saw a lot of positive development this year — the explosion of the DeFi sector, the successful completion of Phase 0 of Ethereum 2.0 and the start of Phase 1, and more. Even so, the most likely reason for the surge appears to be the Christmas fever surrounding Bitcoin.
In the last several days, Bitcoin has gone way past its 2017 all-time high, skyrocketing past $20k, $24k, and it even reached $28k yesterday. On Christmas day itself, Bitcoin hit $25k, and the hype regarding the prices and the holiday allowed Ethereum to join in.
Ethereum sees great success thanks to DeFi
It is not uncommon for other cryptocurrencies to start surging when the Bitcoin price sees growth. This is especially true for Ethereum, the second-largest coin by market cap, and the crypto world’s largest development platform.
Ethereum, like others, tends to draw liquidity whenever Bitcoin starts to surge. Of course, while Bitcoin is making new records right now, Ethereum is still 50% short of reaching even its past record. Currently, Ethereum is worth around 0.025 BTC, while in January 2018, it topped out at 0.1 BTC.
Regardless, Ethereum’s behavior is extremely positive, and a good way for the coin to end the year. The project has made great achievements in 2020, especially when it comes to DeFi. Currently, the sector has a TVL of $13.3 billion, and more than 1 million users.
If DeFi continues to explode throughout 2021, the price of Ethereum could easily follow that growth, as well.