Why the Ethereum (ETH) price is on fire today

The crypto market has continued its recovery on Wednesday and edged higher in afternoon trade.

This has left the entire crypto industry with an improved market value of approximately US$264.6 billion according to Coin Market Cap.

The Bitcoin (BTC) price is up marginally over the last 24 hours to US$6,830.35 per coin, but the best performing major coin by some distance has been Ethereum (ETH).

The Ethereum price has risen 3.3% since this time yesterday to US$413.06 per token, giving it a market capitalisation of almost US$40.8 billion.

This latest push higher has now extended Ethereum’s gain since Friday afternoon to over 12%.

Why is Ethereum on fire?

As well as improved sentiment in crypto circles, there appears to be a couple of catalysts for this push higher.

The first is that, like Bitcoin before it, Ethereum has survived its own death cross. The death cross is a technical analysis indicator which occurs when there is a bearish crossover between the 50-day moving average and the 200-day moving average.

It often results in traders hitting the sell button in a hurry, driving an asset’s price down significantly.

But this sell-off hasn’t materialised and its shares have pushed higher instead, giving trader sentiment an additional boost.

Further to this, another potential catalyst is the arrival of Golem, a peer-to-peer market that puts a computer’s excess CPU power to use for other people.

According to CoinDesk, a beta version of the ambitious project has finally been launched on the Ethereum Mainnet today.

Golem has been described as the “Airbnb for computers” and aims to create a global market for idle computing power. Users can rent out unused computing power and be paid for it in cryptocurrency.

Time will tell whether the project will be a success, but I’m a big fan of the idea.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.