Ethereum underperformed against Bitcoin as BTC pushed more than $ 33,000 today. ETH is up 8% in the last 24 hours while BTC has gained more than 11%.
Despite its relative underperformance, analysts are quick to believe that Ethereum will overtake the leading cryptocurrency. Analysts are targeting USD 800 in the near term as Ethereum crosses key resistance levels around USD 750.
Ethereum could reach $ 800 soon
Ethereum could reach $ 800 soon, analysts say. A crypto asset analyst noted that the cryptocurrency passed key resistance levels this morning and so is willing to move towards $ 800 as long as BTC holds $ 30,000. He wrote about this:
“Good, it feels good to be a gangster, perfect pit to our possible pit level at $ 718 and this morning with more power than originally expected… huge morning. Thinking $ 800 will be on the chart in the next 12 hours if BTC can hold the $ 30,000 level with confidence. “
Chart of ETH's price action over the past week with analysis by crypto trader and analyst Cactus (@TheCryptoCactus on Twitter). Source Chart from TradingView.com
Strong fundamental trends to drive price action
Andrew Keys, a former ConsenSys director and Ethereum investor, says that the leading cryptocurrency is likely to see a strong 2021 due to technical trends:
“On December 1, the Ethereum community successfully launched phase 0 of Ethereum 2.0. The network upgrade from Proof-of-Work to Proof-of-Stake will scale up Ethereum and make it run faster with less computing power. In 2021 we will see Phase 1 of Ethereum 2.0 go live, dramatically improving scalability. “
Keys explained that he thinks the Ethereum 2.0 upgrade will have enough effect in the marketplace to take the cryptocurrency to $ 2,000:
“The Eth 2.0 upgrade will catapult the network’s capabilities and attract even more attention from companies and institutional investors, pushing the price of the ether currency to new heights.”
He thinks tech trends and general macro trends will push DeFi’s value to $ 150 million. He thinks a large amount of capital will be transferred from Bitcoin and other blockchains to DeFi through cross-chain solutions such as RenBTC and tBTC.
This will likely drive up potential returns in the DeFi space, which should help Ethereum.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Unsplash Chart from TradingView.com Price Tags: ethusd, ethbtc Here's Why Analysts Think Ethereum Will Soon Move Toward $800