Ethereum’s native cryptocurrency is rapidly approaching the $4,000 price level thanks to continued bullish momentum as the market embraces its potential, including celebrities.

Ethereum’s current rally is fueled by various positive developments such as the announcement that Twitter will allow users to include their Ethereum and Bitcoin addresses on their profile. However, one of the most interesting aspects of the current rally is that it has attracted some celebrities such as actress Reese Witherspoon. She revealed through a tweet that she made her first purchase of ETH and was welcomed by Gemini exchange co-founder Tyler Winklevoss and YouTuber Logan Paul.

Witherspoon is just one of the many celebrities that have recently embraced crypto and this is good news because it might encourage more buying activity from the retail market. It also aligns with the previous announcement that Twitter will introduce tipping through crypto, which might add to the demand for ETH and other cryptocurrencies.

ETH is currently trading at $3,950 after registering a 5.52% rally in the last 24 hours at the time of this press, and it has so far rallied by 27.12% in the last 7 days. It will likely break through $4,000 if it maintains its current trajectory and perhaps set a new all-time high from the recent ATH of $4372.

Source: Binance

Although ETH has a lot of potential upside that will be fueled by the ongoing rally, a substantial market correction is inevitable especially now that it is overbought according to the RSI. However, the long-term outlook currently looks good especially with the critical upgrades this year aimed at increasing the network’s efficiency.

What will push ETH towards high estimated price levels?

Long-term sentiments for Ethereum are quite bullish, with some believing that it will go as high as $20,000 within the next few months. That price level is not farfetched when you consider that Bitcoin traded as low as ETH’s current price level in 2017. ETH has the potential to reach that price range courtesy of multiple factors including its scarce nature given that only around 117.36 million coins exist and it is now deflationary thanks to burning mechanisms in Ethereum 2.0. This means its circulating supply will reduce over time.

Another key growth driver for the Ethereum network is the increasing popularity of decentralized finance and NFTs. Ethereum is currently the leading network as far as DeFi and NFTs are concerned, which means we might see more growth in that segment.

Uncertainties to consider

Although Ethereum is currently the leading network in terms of growth, there is a likelihood that it will experience slower growth if it does not sort out some prevailing challenges such as exorbitant fees. The latter might be the Achilles heel that will discourage crypto projects from launching on the network and instead push them towards the competition. Slower demand means slower growth for the platform.

Competition is another major factor that investors should consider when investing in ETH. Rival networks such as Cardano will reduce Ethereum’s market share and might end up stealing some of the projects running on Ethereum especially if they are enticed by lower fees on Cardano, Solana, and other smart contract blockchains.