Ethereum has successfully breached its US$4,000 resistance and is heading towards the top

If you have invested US$5,000 in ethereum at the beginning of the year, then it would've gone up to US$22,360 as of August 28. But things are taking an even steep route recently with ethereum price reaching an all-time high yet again in the same year. But what triggered the sudden surge? It is bitcoin as always. Yes, the bitcoin price has reached a record high this week after it debuted in the New York Stock Exchange as an official bitcoin ETF. This allows people to bet on the future of bitcoin without having to actually purchase the cryptocurrency. Following the bitcoin value pump, its close ally, ethereum, also followed the suit.

Ethereum price is always closely associated with bitcoin. Although bitcoin dictates the market, for now, ether on the other hand is making slow, yet, steady progress towards the top. In the long run, experts say that ethereum is the best investment choice. This already has an impact in the market with many new and old investors choosing ether over bitcoin. However, the new all-time record could eventually pay a broader way for the ether to make it big in the cryptocurrency market. The bitcoin ETF move has already given a subsidy for investors who were unwilling to purchase coins through crypto exchanges. Although this news is only good for bitcoin investors, ethereum also enjoys the wind of it with a value increase. Besides being a top investment model, ether's effort to house other subsidiaries like smart contracts, easy trading options, promoting decentralized digital infrastructures, etc is also at the forefront of its development.

Ethereum Price Rally

At the time of writing, the ethereum price was US$4,158. Ether had a very tough time breaking the resistance at the US$4,000 mark. Even during its first phase of a massive surge in 2021, the digital token faced a severe backlog to breach the price. However, things changed upside down now with ether rallying above its resistance level for the third day straight. The next major bullish trend the cryptocurrency is heading towards is to breach US$6,400.

Over the past month and the recent price surge has indicated a cup-and-handle pattern on the daily chart, proving an even further surge. By measuring the depth of the graph, experts suggest that ETH has the potential to go up 60% and reach US$6.394 in the coming days. Initially, investors were stuck with the point that ether has to breach its long-term resistance of US$4,000 to perform anything above that. But the surge has strongly indicated a bullish run ahead. Ethereum has also breached its five-month resistance trend line and the ascending trend line that formed since July 20.

Why Ethereum is the Best Choice for Investors?

Ethereum is the second-largest cryptocurrency in the virtual currency market. Ether is often compared to bitcoin for its real-world capabilities. However, Ethereum and bitcoin share very different market capitalization. While ETH is just at US$450 billion, bitcoin is valued at more than US$1.2 trillion. But in a long run, ether is doing far better than bitcoin. Since 2021 beginning, its price has skyrocketed by nearly 1,000%.

Bitcoin is simply a digital currency. But ether on the other hand is a general-purpose blockchain that could allow for smart contract functionalities and easy trading. ETH can process transactions quicker on its network compared to bitcoin.

What Gives Value to Ethereum?

Ethereum's underlying blockchain technology is contributing highly to its development. Although It is remarkably new and untested in many ways, people can use ethereum to run 'decentralized application,' or dapps.

Besides, ethereum is also evolving to be the mode of transaction for NFTs. With the NFT market surging like never before, ethereum has taken the right bus for growth. The ethereum network generates distinct IDs for NFTs, which guarantees their uniqueness.