The western political landscape is changing, which makes the situation increasingly uncertain from an economic and a social point of view. On the other side of the planet, it seems like China is cracking down on private capital and business people. The founder of Alibaba and the Ant Group, Jack Ma, hasn’t been seen for some time, and some even claim that he is missing. Some of the funds have been frozen, which is panicking other rich Chinese nationals, who are transferring their funds into cryptocurrencies. So, the digital market is benefiting from this new safe haven status, and as we will explain below, Ethereum is likely to keep this status, as the DeFi transactions keep soaring.
Ethereum, like all Altcoins, is always going to be pegged in some way to Bitcoin. Firstly, Bitcoin is the most well-known and (comparatively) stable cryptocurrency and, as such, analysts often use it as an indicator of investor appetite for digital currency in general. Secondly, many exchanges require the exchange of BTC for other coins, which make Bitcoin something like a crypto reserve currency. Therefore the price of Bitcoin will – for the foreseeable future – reflect the wider cryptocurrency market, to some extent. In order to form a balanced Ethereum price analysis for 2021, it’s necessary to collate information from several areas.
Many crypto experts have weighed in on bitcoin and Ethereum as their popularity continues to grow. Ethereum gained more than 460 percent in value in 2020, making it the best-performing major cryptocurrency. Altcoins, such as Ethereum, typically benefit from bitcoin’s fortunes.
Similarly, both Bitcoin and Ether employ blockchain technology to make all this possible. However, aside from these basic similarities, Bitcoin and Ethereum are two very different animals. The Ethereum gas limit (block size) is now at 15 million which represents a 25% increase from what it was just a couple of days ago (12.5 million). This phenomenon highlights a broader user base and a network usage that goes beyond short-term speculations. The increase in the number of addresses is not limited to new users, but also includes a growing number of addresses with non-zero balances, which have reached 136 million.
With the arrival of Dfinity expected some time in Q1 2021, its market share might be eroded somewhat along with Ethereum’s. In any case, the layer 1 blockchain space is heating up as competitors seek to outpace Ethereum 2.0’s phase 1+ developments. Every four years, a halving occurs on the bitcoin network, which is when the block reward given to miners for processing transactions is cut in half. The rise in ether gives McGlone confidence, rather than hesitance, in his $100,000 bitcoin forecast. This shift in supply dynamics comes amid a surge in demand particularly for non-fungible tokens (NFTS). In the past seven days, $521 million in NFT sales have taken place, with a single CryptoPunk token selling for over $5 million, according to NonFungible.com.
Let’s tell the future.The most exclusive news on Bitcoin and cryptocurrencies, trading, fintech, and blockchain. The Supertrend indicator displays an uptrend signal when it displays a green line below the price, marking it as a potential growth indicator for traders. The Supertrend also displays a downward red line, indicating potential resistance to Ethereum trading above $3,667. Resistance could prevent the asset from reaching a price test at $4,000. Ethereum’s path toward significant price growth during 2023 is unclear because data shows that short-term improvements seem unlikely. Multiple important performance indicators make the current condition of cryptocurrency clear.
