As Bitcoin surges to its all-time-high (ATH) of near $70,000, analysts closely watch Ethereum, which is the second-largest crypto currency in terms of market capitalization. Analysts wonder how quickly Ethereum will follow and surpass its previous ATHs, of about $5,000, printed in late 2020.
How will Ethereum react if Bitcoin breaks through $70,000?
One analyst posted on Platform X. highlights The difference between the two coins compared to when Bitcoin last broke through the $20,000 highs in 2017. Ethereum then was trading at just $600, a 57% drop from its previous ATH (about $1,400).
Ethereum is close to $4,000, as Bitcoin is nearing its record high of $70,000 set in December 2021. The difference is that ETH has fallen 36% short of its ATH, which was around $5,000.
Analysts are wondering, based on historical performance, when ETH is likely to pass $5,000. Analyst notes that, when Bitcoin passed $20,000 by late December 2020 it took ETH approximately two months to surpass $1,400.
The boom that followed this breakout pushed ETH up to $5,000. This was accelerated mainly through retail activities centered on decentralized finance (DeFi), and non-fungible (NFT), token minting.
It is evident that buyers are in command of the Ethereum daily chart. ETH prices, CoinMarketCap data reveals, have risen by about 7% over the last 24 hours. It remains to see how quickly ETH will be able to repeat the previous 2020-2021 feat.
Explore ETH’s Potential
Ethereum’s price continues to benefit from the Bitcoin expansion. Capital has flooded to Ethereum as a result of the recent rise in Bitcoin prices, boosting its ecosystem which includes DeFi and NFT protocols. DeFiLlama data shows Ethereum currently manages assets totaling $56 billion.
Lido and Maker are among the top DeFi protocols in Ethereum. UniswapEigenLayer has seen a strong increase in inflows over the past week, day and month.
Ethereum’s price is also supported by the hope that a spot Ethereum ETF will be approved in the future. BlackRock is one of the most prominent asset managers that have filed with the United States Securities and Exchange Commission.
But the agency delayed a decision on BlackRock’s application for an Ethereum ETF spot, citing concern about the new protocol of the Ethereum network. proof-of-stake consensus mechanism. The SEC expressed concerns that staking is a core element of proof-of-stakeThis could lead to manipulation.
Reservations about the clear statement proof-of-stake Ethereum’s prospects are dimmed by the recent price rise, despite its current strength. Even so, the community feels relieved that the Commission refused to approve a Bitcoin ETF spot for approximately ten years prior to January 2024.
Feature image taken from DALLE and chart taken from TradingView
Disclaimer: article This information is only for educational purposes. NewsBTC has no opinion about whether to purchase, sell or hold investments. Naturally, investing involves risks. It is recommended that you conduct your own research. own Do your research before making investment decisions. You are solely responsible for the use of information on this site. own risk.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: www.newsbtc.com