- Ethereum forecast for 2021
- *Ethereum Forecast
- "Ethereum is in such great demand because it is going through a transformation that will make it even more decentralized and safe.". This attracts buyers from both the institutional and retail worlds. "
- *How Bitcoin affects Ethereum's forecast
- *Is it true that altcoins always go up with bitcoin?
- *Can the ether rate rise?
Ethereum forecast for 2021
Should we expect new price records for the first altcoin?
In November, the bitcoin price renewed its all-time high, breaking through the $ 69 thousand mark.And in general, the market situation is quite positive: the United States approved the first exchange-traded fund (ETF) based on the first cryptocurrency, and payment giant MasterCard announced plans to add digital assets ...
These trends are driving the altcoin season to begin soon. And the main one - Ethereum - has already shown impressive results. The growth of the second cryptocurrency began in parallel with Bitcoin. On November 10, the ether set a new absolute price record: at the moment the rate exceeded $ 4,840.
Here's what ETH has achieved recently and what Ethereum's forecast for 2021 is.
*Ethereum Forecast
Ether reached its first price peak at the beginning of 2018 - then the cryptocurrency was trading at a price of $ 1,200. However, Ethereum did not last long at this level. For quite a long time, the cost of the altcoin fluctuated in the region of $ 90– $ 300. Everything changed in the summer of 2020, when the cryptocurrency rate went up sharply - and the upward trend in Ethereum continues to this day.
In January 2021, the altcoin has already broken its absolute record, but the ether did not even think to stop there. By mid-April, the cost of Ethereum came close to $ 2,500. Then the creators of the cryptocurrency carried out a hard fork Berlin, which is part of the plan to switch to Ethereum 2.0. But the growth continued after the update, and on May 12, the value of the cryptocurrency exceeded $ 4,300 for the first time.
The rapid growth was followed by a period of recession, but in the fall the ether rate rushed up again - on October 21, it broke the spring record. After that, the price of the first altcoin dropped somewhat, and soon ETH was trading at $ 4,200.
The growth period was again replaced by a short-term fall, by October 28, Ethereum was worth less than $ 4 thousand, but the next day the first altcoin renewed its value record at a level above $ 4 440. After that, a new phase of rapid growth began, which culminated on November 10. Then the cost of ETH was above $ 4,840.
Making a forecast for the ether rate, experts note that further growth of the digital asset is possible. So, Currency.com analyst Rakesh Upadhyai sees the advantage of bull investors:
"The moving averages are rising, and the RSI is just below overbought, indicating that the bulls are in control."
A break and close above $ 4,381.71 may signal the start of the next stage of the uptrend, which might see the psychologically significant price level of $ 5,000 broken.
“The target price for Ethereum is $ 6,365, which implies a 60% rally. Despite the fact that the two analysis models speak of an optimistic outlook for ETH, the token may face resistance at $ 4,369. "
Ether can be called one of the main contenders for the title of the main coin of 2021 for private investors. At the beginning of the year, analysts believed that this altcoin was waiting for a long-term upward trend. The specialists relied on the announced transition of the network to the Ethereum 2.0 version. As soon as the update is released, it will no longer be possible to mine Ether - it will be possible to receive new tokens using staking. This means that coin holders will receive passive income when their wallets are online.
The transition to the new system, on the one hand, will lead to the fact that investors will buy back some of the coins in order to keep them and receive income. They will, on the other hand, form pools, removing the coin from the market.. And the fewer coins on it, the more stable the cryptocurrency rate will be, experts are sure. This, in turn, will lead to a harmonious growth in investment in Ethereum.
Cryptocurrency developers are already in full swing preparing to update the network to version 2.0 - so, on October 27, the Altair update will be released. He will make changes to the Beacon Chain, a supporting system that will enable the future merger of the Ethereum network.
What factors influence the broadcast forecast
At its peak, Ethereum's growth was 491% compared to the beginning of the year. Many experts are confident that the cryptocurrency has the potential for further growth.
*Simon Peters, an analyst at the fintech company eToro, believes that Ether owes its growth to blockchain updates:
"Ethereum is in such great demand because it is going through a transformation that will make it even more decentralized and safe.". This attracts buyers from both the institutional and retail worlds. "
The head of the London Trading Academy, Paddy Osborne, is confident that Ethereum investors are less prone to panic:
"While the whole cryptocurrency market is prone to panic, Ethereum is distinguished by the lack of catastrophic falls during moments of strong gain." With low interest rates in the US and an active speculative retail market, the prospects for further growth remain. "
Dacxi managing director Katarin Wooller compared what is happening with Ethereum with the events of 2020 in the Bitcoin field:
“This is similar to how institutional players got interested in Bitcoin in the summer of 2020. Now Ethereum is receiving the same attention, the price of which is growing because of this "
From this we can conclude that the upcoming network updates, a stable situation in the economy and interest from institutional players can positively affect the ether rate. The latter includes, for example, the interest of the Bank of France, which bought digital bonds based on the ether blockchain for the digital euro being tested. However, there are additional reasons to believe that the cryptocurrency's value will continue to climb.
For example, Ethereum's forecast was significantly impacted by the NFT boom that began in February 2021. Non-fungible tokens (this is how the abbreviation stands) allow any digital art to be sold on the Internet so that only one holder can own it. After the purchase, he receives a unique token, which confirms his ownership rights. NFTs may run on a variety of blockchains, with Ethereum being the most popular.
At the same time, the Ethereum Foundation - an organization created to support cryptocurrency - entered into a partnership agreement with Reddit, one of the largest forums. One of the joint projects of the companies will be the introduction of the digital currency Community Tokens, which give out to participants some subreddits for active participation in the life of the community. Tokens are a currency created on the basis of the ERC-20 standard, which is developed on the basis of Ethereum.
At the same time, the Ethereum Foundation - an organization created to support cryptocurrency - entered into a partnership agreement with Reddit, one of the largest forums. One of the joint projects of the companies will be the introduction of the digital currency Community Tokens, which give out to participants some subreddits for active participation in the life of the community. Tokens are a currency created on the basis of the ERC-20 standard, which is developed on the basis of Ethereum.
Experienced traders and analysts give a positive outlook for Ethereum. Garry Tan, co-founder of the venture capital fund Initialized Capital, believes that altcoin is now aiming for the $ 10,000 mark. Fundstrat analysts agree with him, who called the same goal for cryptocurrency.
*How Bitcoin affects Ethereum's forecast
In an attempt to make a forecast of the Ethereum rate for 2021, it is worth focusing primarily on the dynamics of the ETH / BTC pair. Not so long ago, Ethereum, for the first time in its history, showed independence from Bitcoin price fluctuations. Previously, any drawdown in BTC caused a protracted drop in ether, a similar situation was with the growth of the rate.
In April, as follows from the price chart, Ethereum broke away from the Bitcoin trend and went into growth independent of its older brother. This happened shortly after the renovation of Berlin.
Between Bitcoin and Ether, there are some fundamental distinctions. The most important is that, unlike the previous cryptocurrency, Ethereum's emission is unrestricted. This means that you may potentially issue as many tokens as you want, which is why the two cryptocurrencies' potentials are not equivalent.
Many analysts and even institutional players note the advantages of ether over other cryptocurrencies. For example, JPMorgan cited stable liquidity, transaction speed and less dependence on the derivatives market as the main advantages of the first altcoin.
*Is it true that altcoins always go up with bitcoin?
The rise in the bitcoin rate often reflects the generally positive state of the crypto market. Altcoins usually begin to grow not with the first cryptocurrency, but a little after, when the bitcoin price calms down. This phenomenon is called the altcoin season.
*Can the ether rate rise?
Maybe, but everything will depend on market sentiment and future network updates. The transition to Ethereum 2.0 is called one of the main factors in the future growth of the asset price. Anyway, always do your own research before investing and don't invest more money than you are willing to lose.
*What is the most daring broadcast forecast?
Analyst of the NewsBTC portal Reinaldo Marquez believes that in a couple of years Ethereum can be traded at prices ranging from $ 20,000 to $ 40,000.