Is Ethereum Targeting the goal of $2000?
"I'd take Ether bet all day long" - Winklevoss
February 22, 2021 (Investorideas.com Newswire) Ethereum is becoming popular day by day and it is a major rival to Bitcoin. In the past, Ethereum was nowhere near Bitcoin and nobody thought that it might make a rebound very quickly. It rose up to 40 percent in only the first days of 2021. Experts believe that this rapid surge of Ethereum is a sign of something incredible coming its way in 2021 and beyond.
Michaël van de Poppe, an analyst at Cointelegraph markets states in a tweet, "It's time for #Ethereum, #Polkadot, #Cardano, #Chainlink and more to break all-time highs. I do believe that we're seeing money shift from BTC towards altcoins and that Ether has bottomed out on the BTC pair. So probably continuation of altseason in this quarter with the topping out of Bitcoin dominance."
MicroStrategy's CEO Michael Saylor and SkyBridge Capital's Anthony Scaramucci are both interested in investing in the Ethereum's own token ETH and then a whole new $2,000 rush is expected to the price of Ethereum. According to CryptoCompare, Ethereum is the biggest cyrptocurrency trading volume however; its $120B market capitalization is still far behind the Bitcoin. Although not as the suge in the price of Bitcoin, still Ethereum's prices are still accelerating. Bitcoin's start of the year has been slow while Ethereum has dramatically grown against the prominent cryptocurrency.
In 2020, ETH, the currency by Ethereum Blockchain sold at a very truncated number on the exchanges. The CEO of CryptoQuant explained this fall of Ethereum and compared it to the tumble of Bitcoin. He says; "It seems the sell-side liquidity crunch started to hit $ETH just like the $BTC market. For $BTC, all exchanges' reserves decreased by 31% compared to Feb 2020. For $ETH, all exchanges' reserves decreased by 20% compared to May 2020."
Nonetheless, after the game of rise and fall, Ethereum is finally back on its track. The reasons are said to be its prominent funding and heavy order selling incentives. According to the analysts at Glassnode, "Ethereum funding rates are at a record high, breaking an average of 0.2% across major exchanges. #BitMEX is leading the pack with a funding rate above 0.4%."
James Todaro, a crypto analyst believes that Ethereum has the potential to surge to over $1tr market cap because of the DeFi technology. Given this approximation, Ethereum can be priced at $9000 in 2021. Another prediction by Wallet Investor, the price of Ethereum can reach $872 in the year 2021 and to $1,076 by the end of 2022.
As soon as ETH hit $1,161, there was a rapid increase seen in the sell orders and the data indicates that the late buyers are being wedged out by the assertive buyers. Now Ethereum also known as the "smart contract giant" is all set to target $2000. The number of coins that locked away has hit 10.33 million that represents $16.8 billion.
However, some experts of the field are concerned that it might see a pullback before hitting its goal of $2000 this year. The main reason behind this surge of Ethereum is the amount of coins that got locked away in the different DeFi protocols and its deposit contracts and it makes the market capitalization of $16.8 billion at the existing value price. Also, the large scale investors are highly interested in buying and investing in ETH, the digital token by Ethereum as they believe it will only climb higher in the future. Ethereum being the second most popular blockchain, the amount of new investors rushed around 40 percent in the last week and the active user count also increased by 25 percent.
The cryptocurrency team of Fundstrat Global Advisors' claims the targert of Ether to be $10,500 price and surging upto 650 percent, because they believe that Ethereum has the ability to transform and revolutionize the world. The reason is the real world applications such as smart contracts, stablecoins and decentralized finance arena. "We continue to believe Ethereum fundamentals are incredibly strong and think [ethereum] represents the best risk/reward investment play in crypto," wrote the analyst of Fundstrat.
We should acknowledge the rising fee of Ethereum that is now hitting the skies. Transacting through DeFi protocols on ETH can now cost up to $150 per transaction whereas the normal transaction only costs $15. Ethereum fees summed up at $600 million in the last year and now only in the first seventeen days it touched $180 million. Fundstrat believes that fees would grow more than 500 percent in 2021 and states that, "Trading at [a $150 billion] market cap, with $3.9 billion of estimated revenue, Ethereum offers a 39x price to sales ratio. However, Ethereum revenue trends are vastly outpacing the fast growing and high-flying conventional cloud stocks," Fundstrat analysts write. "This compares against 21x price to sales multiple and 38% growth for the Bessemer Venture Partners (BVP) Emerging Cloud Index."
Of course, as everyone knows that cryptocurrency is a volatile market and risk is always there. No guarantees or 100 percent true predictions cannot be made, so there is no assurance that Ethereum will see a steady and consistent rise. However, experts believe that Ethereum and Bitcoin are two very different cryptocurrency coins as the founder and the team of Ethereum is known while we are not sure about the founders of Bitcoin. It still carries its own risks yet Megan Kaspar, the founder of Magnetic, is optimistic about Ethereum and its future contracts with CME Group. She states in an interview with Yahoo Finance that, "There is a lot of value that is going to come out of this chain," Kaspar said. "It's definitely being overlooked and it's misunderstood by a lot of investors that are just getting their feet wet to understand the ecosystem as a whole." She tells that over the last year Bitcoin only surged up to 300 percent while Ethereum rose more than 700 percent which shows its ability to out run Bitcoin soon.
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