Ethereum (ETH) has once again breached the $4000 level. The asset has rallied 1.4% in the daily charts, 8.1% in the weekly charts, 10.1% in the 14-day charts, and 30% over the previous month. ETH’s price has also risen by 80.5% since December 2023.
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Why Is Ethereum Rallying?
ETH has struggled to hold the $4000 price point this year. The second-largest crypto project by market cap breached the $4000 mark in March and earlier this month. Prices did not hold in both instances, and the asset quickly faced a correction.
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ETH’s latest rally could be due to Bitcoin (BTC) rising to a new all-time high of $107,822 on Dec. 16, 2024. BTC is the market leader, and other assets tend to follow its trajectory.
With Donald Trump’s inauguration set to take place on Jan. 20, 2025, we may witness another market-wide rally. Trump’s pro-crypto stance has led to a significant rise in investor sentiment. The spike in sentiment could lead to ETH hitting a new all-time high.
Will The Asset Reclaim Its All-Time High Level?
Ethereum is currently down by 17.8% from its all-time high of $4,878.26. The asset peaked in November 2021, more than three years ago.
According to CoinCodex, ETH will continue to rally over the next few months. The platform anticipates ETH will reclaim its previous peak in February 2025. CoinCodex predicts ETH will hit a new all-time high of $5094.65 on Feb. 21, 2025. Hitting $5094.65 from current price levels will entail a rally of about 26.69%.
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The asset could hit a new all-time high sooner than anticipated if the market’s upward momentum continues over the next few weeks. Trump has named a new SEC chair and a White House crypto czar. Both developments could propel ETH to a new peak much sooner than predicted.
