Ether’s 2021 Surge Could Get BTC Back on Track Toward $100,000

A new Bitcoin (CRYPTO:BTC) price prediction by Bloomberg’s Mike McGlone suggests that should the world’s number one cryptocurrency catch up to Ether’s 2021 performance, it could resume appreciating toward the $100,000 mark.

As McGlone points out, it isn’t just Bitcoin that’s expected to keep rallying this year. In fact, a recent Bloomberg report notes that as the crypto-asset class keeps approaching an upward trend in general, digital assets such as Ether (CRYPTO:ETH) are also likely going to see gains throughout the year.

ETH prices have been on the rise in the last few weeks — more than 70% since the July 19 low of $1,787 — in part due to the network’s conversion to the energy-efficient Proof-of-Stake model. The implementation is expected to improve Ethereum’s throughput by several times. Other key driving factors affecting price include the popularity of NFTs (non-fungible tokens), DeFi (decentralized finance) and enterprise blockchain solutions, all segments secured by the Turing-complete coding blockchain.

Another important aspect of ETH’s upside is the network’s capacity when it comes to its usability and applicability to power future financial infrastructure as well as its popularity as the primary platform for tokens, many of which were built on the Ethereum blockchain. Additionally, the network continues to see significant improvements in liquidity conditions as it develops use cases that BTC can’t achieve.

In his August outlook, McGlone pointed out that Ethereum’s “pressure factors are longer-term bullish.”

Speaking of bullishness, from a technical standpoint, ETH has a bullish pattern in progress. The digital asset — trading 5.20% higher at $3,243.61 at press time — is expected to continue rising as its identifiable uptrend pattern remains intact since July 20 even as minor pullbacks occur.

As Ether’s rally matures after a few months of consolidation, a period that resulted in the digital asset smashing through the $3,000 psychological level, it’s quite possible to see it become a primary performance leader of the broader cryptocurrency market.

In fact, ETH, which we expect to trade within the $2,500-$4,000 range until the beginning of the 4th quarter, and then hit $6,500 by the year-end, is rapidly moving toward nr. 1 market value status. It nearly matched BTC’s Dec. 2020 capitalization when it peaked at half a trillion dollars.

Price Action

Ether’s next resistance level would be the $3,500, the $3800, and then the $4,000 level. The coin’s year-to-date gains currently print at more than 320%, far exceeding Bitcoin’s 58% rise in 2021. BTC was last changing hands above $46,000, up 3.20% on the day.

ETH is the second-largest digital asset with a current market cap of over $379 billion.

Disclaimer: Not financial advise

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About Ron Haruni 1067 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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