ETH has reached new highs again! Where is the head?

Suddenly! Ethereum has reached a new high!

The market showed that Ethereum rose rapidly in the morning and successfully broke through the previous high of $1,439.39. It once touched $1,474.99, and set a new record high in less than a week.

Why is Ethereum going up?

Obviously, Ethereum's rise is due to the rapid development of DeFi. In the past month, DeFi leading projects and blue chips have demonstrated amazing explosive power. The decentralized exchange Uniswap governance token, UNI, rose 256.68% in a single month, and reached 34.17% on the 7th. Today, it exceeded $12, setting a new record high and raising its market value ranking to 14th. Also in the top 20, there is the decentralized lending agreement AAVE, which rose 247.91% in a single month and reached 42.96% on the 7th, which also created a record high.

And in the list of 20-50 market capitalization, we can also see the joint venture asset issuance agreement Synthetix (22), the old DeFi project Maker (29), the DEX platform Sushiswap (35), the old mortgage lending platform Compound (38) and aggregation Income Agreement YFI (46).

DeFi projects are increasingly occupying the top position of the crypto market value list, and these projects are basically based on the Ethereum network. As the core asset in various DeFi activities, the rise of ETH is not surprising.

Many people worry that the market value of DeFi is getting bigger and bigger, the bubble is getting bigger and bigger, can it go up later?

With floods flooding, today's investment market is already an imaginative market. The market value of Tesla shares is over 800 billion U.S. dollars, with a P/E ratio of 1677.45, while BMW’s market value is only 46.2 billion U.S. dollars, and its P/E ratio is only 13.44. In 2020, Tesla’s market value will increase by 500 billion U.S. dollars. Investors use real money for the future. The air outlet, pay for the imagination.

Also in the cryptocurrency market, QKL123 data shows that Uniswap has a 7-day turnover of 5.027 billion US dollars, a 30-day turnover of 21.115 billion US dollars, and 28,800 active users. The spot trading volume of the centralized exchange OKEx in the past day reached 3.4 billion U.S. dollars, and the monthly active users of OKB alone exceeded 70,000 (data as of February 2020). But the market value of OKB is US$1.612 billion, which is less than half of UNI (US$3.576 billion).

The market tells us to embrace imaginative leading assets and value assets, and DeFi and ETH are obviously such. It is not surprising that ETH will continue to new highs in the future.

On the one hand, leaving aside the fundamentals, the rise of Ethereum may be explained through technical analysis. On the weekly K line, the ETH/BTC exchange rate always has a very strong resistance level, 0.04. With ETH's recent rise, this resistance level seems to be finally breaking through, and once it breaks, then there will be a sea of ​​stars, which will undoubtedly arouse investors' enthusiasm for bullishness.

Of course, we should also note that the premise for ETH/BTC to break through 0.04 is that Bitcoin can still maintain an upward trend. If BTC enters a downward trend, the breakthrough of the ETH/BTC exchange rate may be only a short-lived, and the bull market will also end. However, if the BTC bull market continues and the momentum of ETH continues, then in the follow-up trend, ETH may be able to perform more amazingly than BTC