Ethereum (ETH) recently broke a new all-time high following a rally that began just a month ago. On Wednesday, the second-largest crypto by market cap breached the $4,600 price level for the first time ever. Now, the momentum shows no signs of slowing down as ETH looks set to consolidate on its gains in November. Furthermore, the digital currency is well on course to hit its end-of-year forecast at $5,000.
Although ETH is currently changing hands at the $4,750 price level, analysts say there is no cause for concern. In fact, this retracement is to be expected according to market observers. This is because it provides a springboard from which the price of the token can |hit higher price levels. They note that ETH continues to reveal bullish patterns, in addition to trading above its 100-day moving average. Furthermore, the crypto has also maintained high levels for the 5-day moving average as well.
However, analysts are also quick to warn that a slip in momentum may see ETH drop back to $4,500. The key here is that all the aforementioned signs remain in place for further growth to establish.
In addition, the emergence of decentralized finance and non-fungible tokens are driving up the transaction costs of the Ethereum blockchain. At one point, transaction fees were as high as $56 due to increased blockchain activity.
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