Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Ethereum Has Gained Over 50% in 2021: What Should Investors Expect?
The new year started with a bang as Ethereum managed to rocket from $770 to hit $1,151 in just 48 hours – a level last seen in January 2018. The rally came about as ETH gained momentum following big brother bitcoin’s colossal uptrend over the same period.
The latest push higher by ETH has many speculating that the popular altcoin is well poised to soar to a new all-time high. Although 2020 will be remembered as the year of BTC, Ethereum managed to outperform the top cryptocurrency by a substantial margin, rising more than 600%.
And now, just five days into 2021, ETH signals that an encore performance could be developing; the second-largest crypto has already grown more than 50% from the start of the year to the latest high at $1,150.
Where Analysts See ETH Trending Next
At the press-time price of $1000, ETH is still a few hundred dollars below the record price of $1,433 observed in Jan 2017.
However, analysts are optimistic that the price will soon shoot up as the coin appeals to more big-money investors. According to Jehan Chu, CEO of trading firm Kenetic Capital, the relatively low price of ether is becoming irresistible to Wall Street investors “drunk on bitcoin gains.”.
Chu added that institutional players like MicroStrategy and SkyBridge Capital are considering investing in ETH, and once they make a move, the altcoin’s price will likely explode toward $2K.
Similarly, the managing partner at hedge fund Blockhead Capital, Matt Kaye, sees ETH hitting $2K soon. Kaye cited several reasons why he projects that the second-largest cryptocurrency will rip through $2,000 in a Jan 4th tweet.
He pointed to the market currently under-allocated to ETH and increased institutional interest in the asset as some of the driving forces that could propel the altcoin higher.
ETH Could Soon Challenge ATH
As per data from on-chain analytics firm CryptoCompare, some exchanges have registered ETH trading volume at over $20 billion in the past 24 hours. This data shows that Ether is closing in on the $22.4 billion trading volume of BTC.
John Ng Pangilinan, the managing partner at Singapore-based Signum Capital, commented on the growing trading volume in ETH markets.
“Ether trading volumes are closing on bitcoin trading volumes. That shows an aggressive move by bulls into the ether,” Pangilinan commented, adding that the altcoin looks set to challenge all-time highs.
Besides growing demand, ETH will continue to benefit from a shortage in sell-side liquidity as investors move their coins into DeFi or stake in Ethereum 2.0.