Ethereum (CCC:ETH) is on the march again as the cryptocurrency increased 7.13% as of 7 a.m. Eastern on Tuesday. ETH is currently the second-highest valued digital currency, according to Coinbase. With this rally underway, what Ethereum price predictions are floating around?
The move, as high as $1,457 per coin in the last 24 hours, looks poised to touch its previous all-time high of $1,459.93. It comes as recent market gyrations fueled by traders on the Robinhood app have bolstered participants’ belief in decentralized finance, or DeFi, along with boosting Ethereum price predictions.
DeFi is a set of blockchain and crypto-based financial services, very similar to the financial services provided by traditional players. However, DeFi services are absent any centralized single authority holding the power to control the services.
Robinhood Limits Push Case for DeFi
Last week’s move by Robinhood to curtail retail investors from trading in several stocks, including GameStop (NYSE:GME), rankled the trading apps users. They were suspicious of the platform’s relationship with several of those traditional players, such as Citadel Securities, as they assumed those ties were behind Robinhood’s blocking of trades.
Essentially, retail investors believe that Robinhood overstepped its boundaries and cost its customers earnings opportunities. One customer went so far as to file a class-action lawsuit.
In fact, as of Tuesday morning, GME stock was just one of eight stocks that the platform was limiting new positions in. The others included Koss (NASDAQ:KOSS) and Naked Brand Group (NASDAQ:NAKD). Robinhood posted a table listing “the maximum number of shares and options contracts to which you can increase your positions.” It advised users that “these limits may be subject to change throughout the day.”
Cryptocurrencies like ETH have a history of trading at extraordinary peaks only to dip sharply weeks later. Should readers speculate on the digital currency at these prices or avoid it for now?
On the possibility that Ethereum traders seize today’s gains to take profits, investors may want to look at smaller cryptos.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.