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Ethereum is both a decentralized software platform and a cryptocurrency, the latter being more correctly known as ether (ETH). Ethereum is currently the second largest cryptocurrency on the market by market cap, the largest being Bitcoin. Ethereum’s innovative blockchain platform and its capabilities are one of the main attractions for many investors, given that it has huge potential for technological development, from games to sophisticated decentralized financial tools. These developments include DApps (decentralized applications) and smart contracts, which are self-executing agreements with the terms written directly into an immutable code that is deployed on the blockchain, reducing the need for intermediaries and increasing efficiency between peers.
In this article, we take a closer look at what Ethereum is, its blockchain platform, ether the cryptocurrency, and offer some insights into ether’s current performance, what’s happening and where it might go in the future.
What are Ethereum’s smart contracts?
Ethereum’s smart contracts are blockchain-based contracts that automatically self-execute when the predetermined actions, written into the code, are met. These contracts are a core feature of Ethereum’s software capabilities and are designed and used to enhance autonomy, efficiency, cost-savings and transparency for all parties involved. This relatively straightforward technology is having a significant impact on businesses in many sectors, such as real estate, music, healthcare, supply chain management and retail.
For example, platforms such as Datahash are being used in agriculture to automatize operations and prevent fraud. Another example of real-world smart contract applications is Tune.fm, a tokenized music platform that enables artists to earn revenue instantly for each second their music is streamed using JAM tokens. This innovation also allows artists to create and sell exclusive content as NFTs directly to fans, which provides them with a much more direct and efficient revenue stream.
Why is ether’s price going up?
Ether’s price has increased by over 30% since the 5th of November. This recent price surge can be attributed to several factors, the first being a universal pro-crypto boost following the announcement of Donald Trump’s election win (Bitcoin’s price has also increased by around 30% since the same date, and has hit a new all time high of around $103,000). Another reason for ether’s strong performance in 2024 is the approval of spot Ether ETFs by the U.S. Securities and Exchange Commission (SEC) has opened new avenues for institutional investment, significantly boosting market confidence.
What’s more, the growing adoption of Ethereum’s blockchain technology, such as DApps and NFTs have further propelled investor confidence and contributed to its growing value. It is also important to note how ether and other cryptocurrencies (particularly large-caps such as Solana, Ripple, Cardano, etc.) often correlate with the market fluctuations and performance of Bitcoin. As Bitcoin reaches higher values, it tends to pull other cryptos up with it. This phenomenon, driven by Bitcoin’s dominance, demonstrates the influence the leading cryptocurrency has on setting the tone for the broader market.
Will ether hit a new all time high (ATH) soon?
As the second-most dominant cryptocurrency on the market, the current bull season is proving profoundly influential for ether, with a positive price trajectory that is catching the attention of both institutional and retail investors. Analysts suggest that ether may soon approach or even surpass its November 2021 all time high of $4,878. The cryptocurrency recently surged above $4,000 for the first time since March 2024, leading experts to speculate on its potential over the next weeks and months.
Bankless podcast host Ryan Adams noted that ETH’s price is forming “structural changes,” indicating a significant move could occur within the next week. Pseudonymous trader Pentoshi highlighted that ETH had its “highest weekly close of the year,” suggesting minimal resistance up to the all-time high, which could act as a magnet for the price.
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