The ETH price has turned bullish, and the move is backed by an increase in DApp activity and protocol revenue.
Ether (ETH) last approached the $2,400 resistance on Dec. 9 but failed to break through, resulting in a retest of the $2,120 support level. This time, investors are gaining confidence in surpassing this level, venturing into territory not seen since May 2022, before the collapse of the Terra ecosystem. On Dec. 22, Ether stood out with a 4% increase, while Bitcoin (BTC) and BNB (BNB) remained primarily unchanged.
While the spotlight is on the exchange-traded fund (ETF) narrative as the primary driver of recent cryptocurrency gains, there are several reasons supporting Ether’s price surge that could potentially push it above $2,500 before the expected ETF approval in mid-January, although the United States Securities and Exchange Commission (SEC) might take until March.
Rather than attempting to predict the future, which is a challenging task in the fast-paced cryptocurrency industry, it’s more prudent to analyze recent trends influencing the demand for Ether using decentralized applications (DApps) activity as an indicator. One can start by examining DApp volumes, as some sectors do not require a large total value locked (TVL), such as nonfungible token marketplaces, games, layer-2 bridges and social networks.
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Source: https://cointelegraph.com/news/3-reasons-why-ethereum-eth-price-could-rally-above-2500