Bitcoin
BTC$48 084.51

-1.09%

Ethereum
ETH$3 421.97

-2.71%

Cardano
ADA$2.38

-0.94%

Binance Coin
BNB$411.53

-1.39%

Tether
USDT$0.998306

-0.16%

XRP
XRP$1.080662

-0.51%

What's next for Ethereum after 100% gain in January?


25 Jan 2021   #Ethereum

Ether, the native cryptocurrency of Ethereum, achieves higher highs, as momentum continues to strengthen. The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, achieved a new all-time high on Jan. 25.

At the same time, technical analysis shows that the ETH/BTC pair is breaking out of its multi-year downtrend hitting the highest levels since September 2019, which should be great news for altcoins in general. 

The higher highs come less than a week after ETH/USD finally broke its all-time high, surpassing $1,400 for the first time in three years.

Community sentiment is extremely positive


The sentiment around Ethereum has become significantly positive after ETH managed to break its previous record price set in January 2018. Anthony Sassano, a long-time Ethereum investor and the head of marketing at Set Protocol, said that the rally is representative of the groundwork accomplished by developers in the Ethereum ecosystem throughout the past three years.

Throughout the 2019 bear cycle, ETH was hit the hardest among other large-cap cryptocurrencies. It consistently underperformed against BTC, struggling to gain upside momentum. 

But the newfound momentum as a result of the rising demand for DeFi has allowed ETH to outperform Bitcoin in the recent bull cycle. Sassano said: “This may be hard to believe but the main reason I get so giddy about $ETH going up in price is not the profits. It's the fact that so many dedicated Ethereum community members spent 3 long years building during a brutal bear market. And now their work is being rewarded.”

On-chain data also demonstrate a similar trend alongside numerous other indicators that suggest the ETH price rally may only be beginning. For example, according to researchers at Santiment, the development activity on Ethereum followed a similar trajectory as the price of ETH.

This trend shows that the ongoing ETH rally is led by strong fundamentals and high developer activity, which makes it more sustainable. The researchers said: “Both #Bitcoin and #Ethereum have made respective runs of dominance over one another here in January. We've just noted that each projects' #Github development activity rate is fluctuating closely to the respective price of $BTC and $ETH.”

What happens next?


Following the rally, analysts say that the momentum of ETH and the Ethereum network’s network effect shows that it is a blue-chip asset in the cryptocurrency market.

Alex Saunders, a cryptocurrency investor, said that “most agree” about Ethereum’s qualities as a blue-chip asset. He said: “2 year ago $ETH fell 90% in 9 months & hit $80. Most had written it off. Yet here we are at new ATH $1500, it's network effects are undeniable & most agree it's blue chip. Love it.”

In the foreseeable future, there are two scenarios for ETH. The price of ETH could rally after the CME futures listing in February, due to large institutional capital inflows. On the other hand, ETH could also see a pullback after breaking its all-time high, as the momentum of the ETH/BTC pair cools down. For example, the pair pulled back on Jan. 21 shortly after Ether broke its all-time high in the USD pair. 

There is a case to be made that the Bitcoin dominance index begins to rebound after a two-month-long altcoin season, which could lead ETH to see a consolidation phase in the short term.

Source


Related

Ethereum options data suggests the battle for $4K ETH is at least a week away
Ethereum price metrics back traders confidence in $3,800 ETH
Ethereum layer-twos reportedly processing more transactions than Bitcoin
Top up with stablecoins at FreshForex
Ethereum's rise to No.1 crypto seems unstoppable
Cryptocurrency derivatives market shows growth despite regulatory FUD
Eth2 staking contract ranks as single-largest Ether hodler with $21.5B
Reasons why Ethereum is unlikely to flip Bitcoin any time soon
Ethereum approaches $3K resistance as Bitcoin price rebounds toward $40K

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 89.6% 18 $48 084.51 -1.09% 4.69% $904 956 857 058 $27 961 083 561
2 Ethereum (ETH) ETH Ethereum predictions 74% 50 $3 421.97 -2.71% 0.11% $402 372 528 292 $14 651 693 364
3 Cardano (ADA) ADA Cardano predictions 65.2% 67 $2.38 -0.94% -8.90% $76 104 680 024 $1 873 232 040
4 Binance Coin (BNB) BNB Binance Coin predictions 65.6% 70 $411.53 -1.39% -0.75% $69 192 704 719 $1 130 545 170
5 Tether (USDT) USDT Tether predictions 95.6% 1 $0.998306 -0.16% -0.24% $68 176 839 441 $56 276 623 103
6 XRP (XRP) XRP XRP predictions 67.2% 61 $1.080662 -0.51% -1.43% $50 382 872 054 $2 049 227 741
7 Solana (SOL) SOL Solana predictions 56.4% 90 $161.83 2.23% -9.89% $48 057 404 496 $4 399 561 667
8 Polkadot (DOT) DOT Polkadot predictions 60.8% 81 $34.04 -2.22% 7.04% $33 616 818 668 $1 565 978 665
9 Dogecoin (DOGE) DOGE Dogecoin predictions 66.8% 75 $0.240174 -1.47% -2.38% $31 547 290 825 $853 022 336
10 USD Coin (USDC) USDC USD Coin predictions 90.8% 1 $0.998160 -0.15% -0.25% $29 355 863 429 $1 913 601 923
11 Avalanche (AVAX) AVAX Avalanche predictions 67.6% 69 $72.99 1.73% 17.93% $16 079 530 755 $1 649 638 415
12 UniSwap (UNI) UNI UniSwap predictions 66.8% 64 $24.39 -1.92% 2.22% $14 920 531 930 $258 250 447
13 Terra (LUNA) LUNA Terra predictions 67.6% 64 $36.13 1.13% -13.85% $14 511 856 283 $813 065 559
14 Chainlink (LINK) LINK Chainlink predictions 74% 50 $28.55 -2.09% 2.09% $12 946 785 264 $933 348 492
15 Binance USD (BUSD) BUSD Binance USD predictions 94.8% 1 $0.998089 -0.17% -0.25% $12 789 067 210 $4 458 804 943

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.