Ethereum dynamics will depend on bitcoin behavior
Some experts believe that the coin will lose its position in the ranking
Ethereum 2.0 release will be the defining event of the year
International consortium of news organizations developing transparency standards.
Ethereum (ETH) is the second largest cryptocurrency in terms of capitalization and is often viewed as a choice for investments. On the web, you can find many conflicting opinions about the prospects of the coin. Some are convinced that ETH is completely dependent on the behavior of bitcoin (BTC), others believe that Ethereum may soon lose its altcoin status, becoming an independent cryptocurrency.
The BeInCrypto editorial team spoke with experts to understand the peculiarities of the coin’s behavior and the prospects for the movement of its rate.
He shared his opinion on the price dynamics of Ethereum with BeInCrypto EXANTE analyst Viktor Argonov. The expert noted that the cryptocurrency, in general, moves in the wake of bitcoin (BTC), albeit with greater volatility. The analyst also drew attention to the fact that since the beginning of the year, the cryptocurrency has risen in price by 34%. Against the background of the positive movement, in his opinion, ETH still retains great additional potential for growth.
In favor of a positive outlook, Viktor Argonov believes, the progress of the DeFi industry is working, state recognition of ETH as an exchange commodity after BTC), as well as the prospect of the introduction by the US Federal Reserve of a new benchmark of AMERIBOR interest rates based on ETH.
“If the above estimates for BTC are correct, then from ETH by the end of 2020 we can expect an increase to $ 400- $ 500,” the expert concluded..
Explosive ETHEREUM Prediction 2021 (Pay Attention To THIS Date)
Estimated growth trajectory of the Ethereum rate. Chart: TradingView
In 2021, the analyst noted, the level of unpredictability of the ETH rate is higher. Viktor Argonov explained his point of view by the lack of confidence in whether the cryptocurrency will switch to the PoS principle from the current PoW.
“Such a transition could sharply raise the exchange rate and bring passive income to holders. However, PoS has risks of excessive concentration of power over the blockchain in a small number of whales, ”the expert said..
With the opinion of Viktor Argonov that by the end of 2020 Ethereum will be able to reach the $ 500 level, he agreed founder and CEO of Listing.Help Sergey Khitrov.
According to the expert, growth to the designated height will be realized through economic recovery and the influx of new funds into the industry. Sergey Khitrov also drew attention to the fact that the cryptocurrency market was one of the first to recover its positions after the crisis. The positive movement, in his opinion, attracted the attention of large investors in the traditional market..
“Ethereum is one of the first to respond to any positive movement in the industry. Also, against the backdrop of the crisis, Bitcoin and ETH are considered as an alternative way of storing money, which will also push the asset to growth, ”Sergey Khitrov explained his vision of the Ethereum prospects.
In his opinion, in 2021, ETH may break the previous record and rise in price to $ 2,000. The main impetus for this, according to the expert, will be tokenization. The term “tokenization” has existed for quite some time. In the broadest sense, a “token” is a certain unit designed to represent a certain value within … More large corporations, which is already underway, but is not publicly advertised.
“Many corporations are moving away from their own blockchains towards Ethereum, due to the ease of operation. In addition, it is much easier, faster and cheaper for tokens issued on the basis of Ethereum to get listed on cryptocurrency exchanges, which today is one of the most important stages in the development of the project, “the expert concluded..
What do popular members of the crypto community think about the prospects of Ethereum
Many analysts prefer to analyze Bitcoin exclusively. The reason is that BTC is the most capitalized cryptocurrency, the movements of which often set trends in the digital asset market. Ethereum also follows the movements of BTC in many ways. Despite this, some experts still give forecasts directly for ETH. Here are some opinions:
- MetaCartel Ventures DAO partner Adam Cochran and DuckDuckGo strategy developer believes that the preparation and release of Ethereum 2.0 will positively affect the position of the cryptocurrency. In particular, the release of the new version, in his opinion, will become “the largest impetus for the economy of the project community.” The developer shared his positive outlook for ETH in his blog.
- Ethereum co-founder Joseph Lubin is confident that the project will develop largely due to the growing demand for decentralized applications. He presented his point of view as part of a bet with Bitcoin Core developer Jimmy Song during the 2019 Consensus conference. The co-founder of the project did not indicate the approximate cost of the cryptocurrency, but his confidence in the further development of the startup speaks of a positive forecast for the movement of the ETH.
- Chris Berniske, partner of the venture capital firm Placeholder, believes that Ethereum will open up prospects for growth to the level of $ 7,500 if the bitcoin rate reaches $ 50 thousand. At the same time, the expert noted that ETH, in his opinion, surpasses BTC in terms of development.
If $ BTC goes > $ 50,000 in the next cycle, and $ ETHBTC returns to its former ATH, then expect to see $ ETH > $ 7,500. pic.twitter.com/5tetUJdbCS
– Chris Burniske (@cburniske) June 14, 2020
Not all well-known members of the crypto community give positive forecasts for ETH. In an interview, the popular analyst and trader Tony Weiss expressed the opinion that in 2020 the coin will suffer due to the pressure of bitcoin. The expert explained his point of view by the fact that the BTC technology, unlike other projects, is actively developing.
Not the most positive outlook for ETH was also provided by Bloomberg analysts. Experts believe that in the near future, the cryptocurrency will lose its second place in the capitalization rating. The main contender for “silver”, in their opinion, is Tether (USDT). They presented this point of view in the June 2020 Digital Assets Market Review..
We will remind, earlier Tether has displaced XRP from the third line. At the time of this writing, the shares of cryptocurrencies in the overall capitalization rating are as follows:
What else you need to know about the situation of Ethereum
ETH, according to researchers at the San Francisco Open Exchange (SFOX), may soon lose its altcoin status. During the research, experts found a high level of correlation between ETH and BTC. According to the SFOX team, the almost step-by-step repetition of Bitcoin movements on the part of Ethereum speaks of a similar reaction of the coin rate to events.
The researchers believe that this behavior of ETH indicates a high level of asset self-sufficiency. As a result, the cryptocurrency, in their opinion, is moving towards independence and may lose its altcoin status..
A similar point of view was presented by analysts at Weiss Crypto. In their opinion, in the future, Ethereum will be more focused on people who are interested in technical innovations, programming and solutions for creating modern developments. Bitcoin, according to experts, will not be perceived in a similar vein.
As time goes on #ETH and #BTC will differentiate more and more. Those who like cool new tech to build stuff on will always gravitate to ETH as opposed to #Bitcoin.
– Weiss Crypto Ratings (@WeissCrypto) July 2, 2020
Earlier, we talked about why Ethereum deserves a place in the top 5 promising digital assets for investing in 2020..
ETH also remains one of the most popular coins for mining. This conclusion, in the course of their research, came from analysts of the Messari company. Experts have found that Ethereum and Bitcoin account for 99% of the income of cryptocurrency miners.
#Bitcoin and Ethereum combine for more than 99% of all miner fees
For now, most blockchains are virtually free to use.
data: @coinmetrics https://t.co/qMpjCi7EB8
– Messari (@MessariCrypto) July 1, 2020
You can learn more about the most promising mining pools for mining cryptocurrency from our material.
Despite the fact that Ethereum, like most cryptocurrencies, is largely dependent on bitcoin, the status of the second largest coin by capitalization makes ETH’s position special. In particular, many see it as an independent cryptocurrency, not an altcoin BTC. To other conclusions:
- Many experts believe that Ethereum will be able to realize growth only against the background of the positive movement of bitcoin.
- Not all members of the crypto community are confident in the bright future of ETH. In particular, many believe that the coin may soon lose the second line of the capitalization rating..
- Despite some doubts, experts presented many arguments in favor of the growth in the value of the cryptocurrency. These include: the rapid transition of ETH to the PoS algorithm, the popularity of the coin among miners, the prospects for the development of decentralized applications and other developments based on Ethereum.
Earlier, we also analyzed the profitability level of ETH and other cryptocurrencies in 2020. Find out the details from our material.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
HUGE Ethereum Price Prediction 2021 – Big News! Don’t Miss Out!
CONTENT Bitcoin is set for long-term growth Formation of the legal framework supports positive dynamics in the market Halving will contribute to …
CONTENTS Can Bitcoin reach the $ 12,000 mark? Experts do not believe in the rapid growth of the DeFi coin could provoke a market fall International …
CONTENT Bitcoin will rise in price, but not much The dynamics of the first cryptocurrency remains unpredictable Investors expect a delayed effect from halving …
CONTENT Traders are tired of Bitcoin at $ 10,000. Crypto community members are tired of waiting for BTC to grow Investors continue to analyze the prospects …
CONTENT Ripple will not repeat the fate of TON, experts say SEC will continue stripping crypto projects Ripple Hearing Is A Wake Up Call for ICO…