Analysts bullish after Ethereum rise – new price target: ETH at $2,600
Ethereum hit a new all-time high of $1,466 in the early hours of 25 January 2021, surpassing its previous record of $1,425. With Bitcoin having already doubled its previous price record of $19,500 in recent weeks, renowned industry veterans are now predicting a similar meteoric rise for Ethereum.
Michael Novogratz, famed hedge fund manager and former bitcoin investor like Ethereum Code, believes the ETH/USD pair will reach a new high of $2,600 in the coming sessions.
Novogratz is the CEO of Galaxy Digital, a financial services company that has made significant investments in Bitcoin and Ethereum.
I had lunch with @ethereumJoseph today. Always makes me want to buy more $eth. Nice start to the week. Chart targets 2600.
– Mike Novogratz (@novogratz) January 25, 2021
Will Ethereum surpass Bitcoin in 2021?
While Ethereum has traditionally lagged Bitcoin in terms of price performance, it has already seen significant growth since late last year. It was trading at around $120 per token in March 2020 and has now grown by almost 1,300%. Bitcoin has grown by almost 800% over the same period.
Ethereum proponents also point out that it is still far from its previous ATH when priced against bitcoin. The ETH/BTC trading pair is traditionally used to measure the relative strength of the cryptocurrency.
At current prices, the ratio is trading at just 30% of the record it set in June 2017. To break this record, Ethereum will need to significantly outperform Bitcoin.
While some believe Ethereum’s declining price will continue, others argue that the smart-contract platform has more potential. The successful soft launch of Ethereum 2.0 in December and the shift to proof-of-stake have likely provided a solid price rally.
Strong fundamentals could justify a valuation jump in 2021, traders argue. According to a recent report by Bloomberg, research firm Fundstrat Global Advisors expects Ethereum to surpass $10,500 (Go to Buy Ethereum with Paypal guide). Fundstrat speculates that the digital asset „could be the best risk/reward investment play in crypto“.
Fundstrat strategist David Grider has also linked Ethereum’s explosive growth to the decentralised finance (DeFi) space. Over $26 billion in assets have been locked into DeFi so far.