The ETH rate is now approaching USD 4,000. The ATH of the cryptocurrency is approximately USD 4,880 (depending on the exchange, this amount may be slightly different). So will we fight for a new price record on the ether trading floor next week?
The ETH rate is heading north
While bitcoin has already broken (or slightly touched – again depending on the trading platform) its ATH, i.e. the USD 69,000 level, ether lags slightly – it is still below its ATH. Today, 1 ETH costs USD 3,940, which is 15% more than a week ago and 4.5% than yesterday. However, we are fast approaching the psychological barrier of USD 4,000. Then there will be little left to ATH, just a few hundred dollars.
The ETH rate is worth watching, especially because many experts point out that the cryptocurrency is currently undervalued compared to Bitcoin. It has a more deflationary issuance model, which means less ETH appears on the market than goes into staking pools.
As you can see in the chart above, since the Ethereum network switched to Proof-of-Stake (Merge update), the supply of ETH on the market has been gradually decreasing.
The above alone means that we can look at the ether price with optimism. Add to this the creation of spot ether ETFs, which will most likely be approved in May. The post-Merge supply phenomenon will also include the purchase of coins by ETF issuers (which is already happening in the case of bitcoin). This may push the price to levels that seem unrealistic today.
A look at the market sentiment and situation
Bitcoin costs approximately USD 67,600 today, which translates into a 9% price jump on a weekly basis and 1% since yesterday.
The mood remains good. The Fear and Greed Index is 81, which means extreme greed.
Meanwhile, the Fear and Greed Index is 83, which also indicates extreme market greed.
