Ethereum Surges as Institutional Interest and NFT Adoption Booms
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The price of Ethereum (ETH) continues to break new record highs thanks to the growing interest by institutional investors and the recent non-fungible token (NFT) boom. The second-largest cryptocurrency recorded a new all-time high yesterday at $3,530, as momentum remains unabated.
At press time, Ethereum now has a market valuation higher than that of Disney, PayPal, and Nestle.
The recent ETH boom has also made its 27-year-old Russian-Canadian founder, Vitalik Buterin, a billionaire. According to a CNN report, the programmer holds about 333,500 Ether in his public wallet, giving him a total net worth of $1.2 billion (based on the current ETH price).
Over the months, NFTs have become immensely popular in the US, especially in the art sector. NFTs are digital assets containing personalized information recorded in smart contracts. This personalized-based nature gives these tokens their uniqueness, as they are irreplaceable and cannot get swapped.
Ethereum is the most used cryptocurrency for purchasing NFTs, which has contributed to the recent price rally.
Meanwhile, the increasing interest from institutional players has also triggered a price hike for the ETH. Last week, the European Investment Bank announced that it would issue $166 million worth of two-year bonds on the Ethereum network.
Jean-Marie Mognetti, the chief executive of CoinShares, noted that the growth seen in the crypto market by NFTs is “mind-boggling” and that “Ethereum as a network is what makes this all possible.”
Key ETH Levels to Watch — May 5
Following a massive surge to the $3,530 record high, Ethereum appears to be taking a bullish break as the cryptocurrency posted a correction to the $3,200 support area. That said, the correction process has gotten completed as bulls are gearing for another leg up over the coming hours.
We could see a retest of the $3,530 ATH once Ethereum breaks above the $3,400 resistance. Failure to move above the $3,400 shadow could trigger another descent to the $3,200, where the ETH should find a rebound opportunity.
Meanwhile, our resistance levels are $3,400, $3,530, and $3,600, and our support levels are $3,300, $3,200, and $3,100.
Total Market Capitalization: $2.29 trillion
Ethereum Market Capitalization: $386 billion
Ethereum Dominance: 16.8%
Market Rank: #2
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