The green days are back in the crypto market, with bitcoin (BTC) leading the bull run while setting the stage for the highly anticipated altcoin season. Notably, the leading crypto asset by market cap, BTC, has entered the price discovery phase, hitting an all-time high above $86,000 on Monday night. This impressive surge in BTC price has catapulted the global crypto market cap above $3 trillion at the time of writing. Contributing to this massive growth is also the recent price surge of several altcoins, including Ether (ETH).
Ether (ETH) reaches $3,300 for the first time in 4 months.
ETH, the native token of Ethereum and the second-largest crypto asset by market cap, has continued to record a substantial price increase in recent days. After trading below $3,000 for over four months since June 2024, ETH has recorded massive capital inflows, pushing the crypto asset’s price above $3,300 on Monday.
At the time of writing, ETH is trading at $3,330, depicting a 37% increase in the past seven days. Accordingly, the project’s market cap has surged to approximately $400 billion as of 11 November, according to Coingecko.
Comparing ETH’s valuation with that of Bank of America, one of the largest financial institutions in the United States and globally, a $57 billion margin is seen as BoA’s market cap sits around $343 billion at the time of writing.
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ETH’s impressive performance goes further to highlight the increasing adoption of crypto assets in the global scene. Particularly, the valuation comparison between ETH and BoA indicates a growing confidence in decentralized finance (DeFi) over traditional finance (TradFi).
Despite ETH’s recent price surge, data shows an inflationary supply trend for the utility token. Currently, ETH’s annual issuance rate outpaces its burn rate, with the yearly issuance at 957,000 ETH compared to a burn rate of 452,000 ETH. This results in a net annual supply increase of approximately 0.42%, a shift from the deflationary trend seen in October 2024.
Read also: Ethereum sees inflationary pressure for the first time in over two years.
The road ahead for ETH
Per Coingecko data, ETH reached an all-time high above $4,800 in November 2021. To reclaim or breach this level, ETH has to post a price gain of over 45%. While the cryptoasset is bound to breach this level —and eventually reach new highs—given the bullish sentiments in the crypto market, traders and investors must be prepared for some pullbacks.
As predicted by a pseudonymous crypto analyst Poseidon, ETH price would likely correct to the $2,900-$2,800 level before resuming a rally to an all-time high.
Read also: Altcoin season to be triggered by bitcoin boost—HashKey Capital forecasts
