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Ethereum has underperformed Bitcoin as BTC has pushed past $33,000 today. ETH is up 8% in the past 24 hours while BTC has gained over 11%.
Despite the relative underperformance, analysts soon think that Ethereum will catch up to the leading cryptocurrency. Analysts are targeting $800 in the short term as Ethereum moves past key resistance levels around $750.
Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment
Ethereum Could Soon Hit $800
Ethereum could soon hit $800, analysts say. One crypto-asset analyst noted that the cryptocurrency has passed key resistance levels this morning and is thus prepared to move toward $800 as long as BTC holds $30,000. He wrote on the matter:
“Good it feels good to be a gangster, perfect wick down to our possible wick level at $718 and this morning with more power than originally expected… huge morning. Thinking $800 is on the cards in the next 12 hours, if BTC can hold its $30,000 level with confidence.”
Chart of ETH's price action over the past week with analysis by crypto trader and analyst Cactus (@TheCryptoCactus on Twitter). Source Chart from TradingView.com
Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP
Strong Fundamental Trends to Drive Price Action
Andrew Keys, a former executive of ConsenSys and Ethereum investor, says that the leading cryptocurrency is likely to see a strong 2021 due to technical trends:
“On Dec. 1, the Ethereum community successfully launched phase 0 of Ethereum 2.0. The network upgrade from Proof-of-Work to Proof-of-Stake will make Ethereum scale and run faster with less computing power. In 2021, we will see phase 1 of Ethereum 2.0 go live, drastically improving scalability.”
Keys elaborated that he thinks the Ethereum 2.0 upgrade will have enough of an effect on the market to drive the cryptocurrency to $2,000:
“The Eth 2.0 upgrade will catapult the network’s capability and garner even more attention from enterprises and institutional investors, driving the price of the ether currency to new heights.”
He thinks that technical trends and overall macro trends will drive the value locked in DeFi to $150 million. He thinks that there will be a large amount of capital from Bitcoin and other blockchains siphoned into DeFi via cross-chain solutions such as RenBTC and tBTC.
This is likely to drive up the yields possible in the DeFi space, which should help Ethereum.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash Chart from TradingView.com Price Tags: ethusd, ethbtc Here's Why Analysts Think Ethereum Will Soon Move Toward $800
