The recalibration of investment portfolios towards altcoins and the positive news background were the main reasons for Ethereum’s growth to a new all-time high of $ 3500. This was stated by the head of the data analysis department of CEX.IO Broker Yuri Mazur.
“In the medium term, the growth potential of Ethereum from the current $ 3,500 to $ 10,000 looks like a more likely scenario compared to Bitcoin, which proportionally needs to get to $ 160,000 over the same period of time. And the price of entering a position on Ethereum looks much more comfortable, ”the analyst said.
The bullish sentiment is also boosted by a large amount of news on the Ethereum network, including the upcoming launch of Uniswap, the Berlin hard fork and the London update scheduled for July.
“Last year, the price of Ethereum faced strong resistance from sellers due to high transaction fees. The current news background testifies to the technical adaptation of the network due to the increased load, in particular due to DeFi, and the tendency to lower commissions, ”Mazur said.
He also recalled that Ethereum became the second cryptocurrency traded on the Chicago Mercantile Exchange. This status allows large institutional investors to consider the coin as a full-fledged analogue of bitcoin.
The price of the first cryptocurrency has found equilibrium in a wide range of $ 50,000- $ 60,000, and while investors are not ready to pay more for digital gold due to the availability of cheaper and no less promising analogues, Yuri Mazur believes. Also, according to him, the price of the coin was influenced by Tesla’s announcement of a 10% reduction in its investment position in bitcoin to test its liquidity:
“Market participants received a signal from Elon Musk that the growth of bitcoin may be temporary, and in the long term, the same rate of movement should not be expected.”
Mazur considers the current corrective movement of the first cryptocurrency to be “drift within the established range”.
“The growth of altcoins may well have a positive effect on bitcoin, with the only difference that the upward trend for it will have a smoother and more modest nature,” the expert summed up.
Earlier, Arcane Research analysts expressed confidence that the altcoin season is already in full swing and named the likely reasons for Ethereum’s growth.
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