ETH has soared, what is the future direction of the market?
At 7:41 am on January 4th, Beijing time, the price of Ethereum (ETH) briefly broke through $1,000.
After a weak December, ETH rebounded in the first few days of 2021, and its strong performance on Sunday heralds the start of a new altcoin bull market.
ETH rose sharply in the New Year, which seems to indicate that the mainstream digital currency will be bullish again in the Year of the Ox.
So what factors have contributed to this wave of soaring ETH?
As early as December 28, some analysts pointed out that the balance of ETH miners was at its lowest point in two years. The depletion of ETH liquidity and rising demand pushed up its price.
Some analysts also believe that this wave of ETH's surge is likely to be the strong inflow of bitcoin institutional funds.
Proponents of bitcoin argue that bitcoin is crowding out gold as a hedge against a weaker dollar and inflation, and there is evidence of growing institutional interest in bitcoin.
Ethereum’s move coincides with growing institutional interest in the cryptocurrency and the impending launch of ETH futures on CME on Feb. 8.
While Bitcoin's surge at the start of the new year has been one of ups and downs, in recent hours, Bitcoin's rally has stalled, and during this time ether has surged significantly against leading cryptocurrencies. rise.
What is the future trend of ETH?
Looking back on 2020, ETH is actually the best-performing asset, with an overall increase of 450%, while its price is still lower than its historical high. Unlike Bitcoin, which is as high as it is, it is almost unaffordable.
ETH broke $1,000 for the first time in 4 years. This time, it is destined to be noticed and accepted by more people.
Led by bitcoin, analysts expect institutions to start buying ethereum in 2021. Ryan Watkins, an analyst at blockchain company Messari, believes, "In 2021, we will start to see investment institutions buying Ethereum. Once you accept that Bitcoin may be valuable, it will broaden your thinking and let you know that other encrypted assets may be too." valuable."
It can be seen that the market outlook of ETH is still worth being optimistic about!
