The Ethereum (ETH/USD) price darted higher during the weekend as cryptocurrency prices rallied. The coin jumped to $3,340, which was an important level of resistance. Its total market capitalization also rose to more than $389 billion.
Ether rally continues
Ethereum prices jumped as Bitcoin and the other altcoins maintained their bullish momentum. The most important milestone was that Bitcoin managed to move above the key resistance level at $50,000.
In most cases, Bitcoin and Ethereum have a close correlation. In total, the market capitalization of all cryptocurrencies tracked by CoinMarketCap jumped to more than $2.2 trillion.
Ethereum also jumped as the Decentralized Finance (DeFi) market remained vibrant. In the past few days, the total value locked of the industry has jumped to more than $83 billion.
This growth has been led by key DeFi platforms like Aave, Compound, and InstaDapp. It is notable since the TVL has more than doubled in the past few months.
The biggest DeFi applications are built using Ethereum’s network. This is even as the ecosystem faces significant challenges like slow speed. Still, with developers transitioning the network to a proof-of-stake ecosystem, there is a possibility that more people will keep developing using the network.
Ethereum price also rose because of the relatively weaker US dollar. The dollar index retreated in early trading as investors moved to other currencies. The gain of the DXY was the first one in about 6 days. In most cases, cryptocurrency prices usually have an inverse relationship with the US dollar.
Meanwhile, the price rallied after PayPal announced plans to offer cryptocurrency products in the UK. The company announced that customers with verified accounts will have the ability to buy, hold, and sell cryptocurrencies for the first time. Initially, the product will support currencies like Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
The ETH price maintained its bullish trend during the Asian session. This pushed the price to an important resistance, where it has struggled moving above several times before. It also rose above the 25-day and 50-day moving averages while the MACD indicator kept rising.
Therefore, the pair will likely keep rising as long as bulls are able to push it above this resistance. If this happens, the next key resistance level to watch will be $3,500. This is in line with the previous ETH forecast.