Bitcoin lags behind expectations and fails to rally above the critical level. But Ethereum is coming to life: The cryptocurrency number 2 by market capitalization is heating up, analysts are expecting new highs in the short term. That, in turn, could take the entire alternative cryptocurrency market up with it. Should we take a look at altcoins now? If you are interested in bitcoin trading, visit bitcoin prime software.
Bitcoin disappoints Ethereum surprises.
Hopes were high; November should be Bitcoin’s bullish month. Top analyst “PlanB” had announced a price target of at least $98,000 some time ago – but things turned out differently. The critical currency has not shown any particular strength in the last four weeks. On the contrary: BTC has suffered almost 7% loss since October (data from Nomics.com) and has repeatedly been exposed to sudden declines. As a result of the corrections, the number of bitcoin addresses in the loss recently even reached a monthly high of 5.62 million, according to blockchain researchers at Glassnode. Moreover, more than 17% separate the current price from the all-time high. Chart guru PlanB comments: No forecasting model is perfect.
Numerous industry observers and analysts have expressed similar opinions, such as Teddy Clips: “These corrections are just noise, the larger trend is and will remain bullish for the foreseeable future,” emphasizes the Briton. The fact that the markets act dynamically is now also evident elsewhere. Because: While Bitcoin is treading water, numerous alternative cryptocurrencies, so-called altcoins, are getting ready for a rally. At the forefront: Ethereum. The second-placed cryptocurrency is currently benefiting from the hype surrounding metaverse tokens. These include such as The Sandbox (SAND), Decentraland (MANA) and Axie Infinity (AXS). They are all based on the Ethereum blockchain hence inspiring the ETH course with their success at the same time. As asset manager Grayscale comments in a new analysis (“The Metaverse, Web 3.0 Virtual Cloud Economies”), the Metaverse and related projects could grow into a $1 trillion industry, A development that can already be seen in the ETH course.
“ETH is preparing for departure.”
For example, the much-cited crypto analyst Adrian Zduńczyk, for example, believes that Ethereum will gain new heights, and this will happen very soon. More than 592,000 people follow him on Twitter under his pseudonym “CRYPTO₿IRB”. He says: Ethereum is on the verge of a parabolic up move.
According to Zduńczyk, a new all-time high in Ethereum could have a massive impact on most other cryptocurrencies. Like many of his peers, the technical chartist believes a so-called altcoin season is a possibility shortly. It means a phase in the Bull Run in which alternative cryptocurrencies appreciate while Bitcoin stagnates. Zduńczyk: “It seems that we are about to reach the final phase about which books will be written.” However, when precisely this phase will occur remains the subject of speculation. For example, Dutch professional trader Michaël van de Poppe still expects altcoins to fall in December. However, he doesn’t expect new course jumps until January: “Patience is required, but the next run will be fun,” he concludes.
Forecast: How will the Ethereum course develop?
As with the entire cryptocurrency market, the same applies to Ethereum’sEthereum’s digital asset: there are no reliable price forecasts. The number two cryptocurrencies have repeatedly had to give up feathers in the wake of price losses on the stock markets. At the end of September 2021, for example, Ether initially lost almost ten per cent after the difficulties of the highly indebted Chinese real estate group Evergrande caused turbulence on the stock exchanges. Then the Chinese central bank was critical of digital currencies – and the price dropped by a further seven per cent. However, the course was able to recover quickly from this. Finally, because of the speculation about the hike in interest rate in the United States, the ether price continued to fall in January 2022. The following applies: external factors will continue to significantly impact the development of digital currency’s price in the future.
Nevertheless, Ether’s (ETH) market potential is considered significant due to the Ethereum system. Also, the further developed 2.0 version of Ethereum should be completed within the next two years. Although their forecasts differ significantly in detail: Most crypto experts agree that the November 2021 value will not remain Ether’s all-time high. CoinPriceForecast predicts that Ethereum’s cryptocurrency will reach $20,000 by 2031 at the latest. The “WalletInvestor” platform assumes that the ether price will increase fivefold by 2026.
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