Ethereum's previous major price outbreak occurred in late 2020 to early 2021, when it skyrocketed from under $400 to over $4,000 in just a few months. This explosive rally was fueled by several key factors: growing adoption of decentralized finance (DeFi) platforms, the rise of NFTs (which mostly run on Ethereum), and a broader crypto market boom led by Bitcoin. Investors poured into ETH, betting on its role as the backbone of Web3 applications. The launch of Ethereum 2.0 also sparked excitement, as it aimed to address scalability and energy efficiency issues. However, the rally was followed by intense volatility, and Ethereum—like the rest of the crypto market—eventually faced corrections and market pullbacks.
