Ethereum has risen to its highest level ever on a frantic night that has added about 200 dollars to its price, raising it 20%.
After consolidating at $1,200s, ethereum jumped during what appears to be Shanghai time, suggesting China did much of this.
For some weeks now price has fallen during Shanghai daytime, making yesterday’s reversal very interesting.
China dominates google searches for eth with people there studying Solidity since at least 2018.
There’s rumors Antminer is apparently planning to launch an eth asics. They don’t seem to care these may last for only a short time prior to the launch of full Proof of Stake. The profits presumably are very high even short term.
That might be making eth hot in China as prospective miners promote it, with that potentially being an explanation of this reversal from China selling to China buying.
Another reason might be defi. This has been very hot recently, flying to new highs with numerous defi tokens surpassing their all time high.
Previously, defi bullishness translated to eth bullishness because eth is one of the primary ways to enter the space as well as to exit the tokens that might be due a correction.
This jump therefore was kind of expected, but the scale and speed of it was a bit surprising initially, although looking back to summer 2020, it seems to be more expected behaviour.
Defi has brought considerable attention due to the significant innovation ongoing in that space, with much of it based on the ethereum network and thus reflecting on eth’s price.
There are also other factors, including ongoin tech developments that are set to lower ethereum’s rate of new supply as well as potentially its total supply in EIP 1559.
Bitcoin’s bullishness in addition was to be reflected on eth sooner or later, with ethereum’s ratio rising recently, suggesting it might be leading the show.
Now at above all time high, ethereum will start price discovery with it to be seen what level it can reach.