ETHEREUM has soared in value lately thanks to positive news surrounding the largest cryptocurrency Bitcoin.
In the past 24 hours, the price of Ethereum has soared 4% to $4,154 at the time of writing, according to CoinMarketCap.
See more: Y is ethereum going up
Also, the cryptocurrency hit a new all-time high of $4,366.09 during the past 24 hours. Its previous record was $4,362.35 that it set in May.
Furthermore, Ethereum is up 14% over the past week.
But keep in mind, although Ethereum is the second-largest cryptocurrency, it is still subject to the same risks in the industry.
One of them is the high volatility. For instance, its value tanked shortly after hitting its previous record high in May.
Ethereum rebounded eventually, the price fell below $2,000 in June.
Along with price volatility, the cryptocurrency sector comes with a lot of complexity, so you need to understand what you’re investing in.
Why Ethereum is going up in value
While it isn’t exactly a meme coin like Dogecoin and Shiba – Ethereum has been influenced by something else other than its fundamentals.
The gains this week can be attributed to a Bitcoin future exchange-traded fund making its highly anticipated debut.
This means, instead of buying Bitcoin directly, you can invest in futures contracts.
Plus, billionaire Elon Musk posted a cartoon of a couple cuddling in bed watching Bitcoin hit the $69,000.
Both Bitcoin and Ethereum have also been on a big rally in the past month thanks to comments from Gary Gensler, chair of the US Securities and Exchange Commission.
Specifically, Gensler has repeated his support for Bitcoin.
Currently, Ethereum is the second-largest cryptocurrency behind Bitcoin, commanding a market capitalization that exceeds $492billion.
Bitcoin, on the other hand, is valued at more than $1.2trillion.
But know the Ethereum has some advantages over Bitcoin.
That includes its general-purpose blockchain, which allows for unlimited smart contract functions.
Also, Ethereum can process transactions quicker on its network compared to Bitcoin.
Future Ethereum price predictions
Given that Ethereum just hit a new record, some are wondering how much further Ethereum can surge at the end of the year and beyond.
Currently, many forecasters are bullish that Ethereum will be able to keep up its gains at the end of the year.
At the end of the year, CoinPriceForecast expects Ethereum to hit $ $6,947 and $15,476 by the end of 2024.
And WalletInvestor has a one-year forecast of $ 6,394.27 and a five-year forecast of $16,503.80.
Crypto analyst Justin Bennett is taking bullishness to another level and thinks it could hit $20,000 in January.
He tweeted this week: “If Bitcoin breaks $65,000 without a significant pullback first, Ethereum probably matches it with a close above the May trend line.”
But keep in mind, forecasts can change if Ethereum experiences near-term volatility.
Recently, we explained five things you need to know about Ethereum.
We also explain four things you need to know about Dogecoin.
Plus, we’ve revealed price predictions for Bitcoin, Ethereum Dogecoin, Shiba Inu, dYdX, and EOS.