Ethereum, the world’s second largest cryptocurrency by market value, is booming with the explosion of decentralized finance, also known as DeFi. Some market experts believe that this well-known cryptocurrency may rise further after its recent record high.
Leading market research firm Fundstrat Global Advisors analyst David Grider said that ETH could easily skyrocket more than 7 times, to $10,500 at the end of the year, and it was Bloomberg that reported.
Only four weeks after Bitcoin broke the record high set in December 2017, the price of Ethereum hit a record high on Tuesday. After breaking through a one-week period of shock, the cryptocurrency rose above $1,400.
Now, the second largest cryptocurrency may develop further and hit a record high of $10,500. Grider’s goal is based on the greater popularity of DeFi, which allows people to borrow without the intervention of third parties. In particular, DeFi provides a very powerful proof for the practical application of the Ethereum blockchain.
The strategist pointed out that “blockchain computing may be the next future”, adding that Ethereum is currently “the best way to return on risky investment in cryptocurrencies”.
The Ethereum 2.0 network upgrade has added credibility to the optimistic outlook. Grider observed that Ethereum has recently successfully transitioned to the Proof of Stake (PoS) consensus algorithm. This upgrade has high scalability and the ability to handle fast transactions. Like payment giants such as MasterCard and Visa.
After several months of delay, this beacon chain went live at the beginning of last month. It is worth noting that this release lays the foundation for more transformations in the future, which are designed to make Ethereum a blockchain network that can support the new financial system.
Grider believes that any delay in the upcoming network upgrade may have a heavy blow to the price of Ethereum. In addition, the cryptocurrency bear market may also pose a risk to his ETH rebound forecast.
In the past few months, Ether has enjoyed spectacular bull market rally, and its price has risen from a low of $305 in August 2020 to a recent high of $1,437.
But since the record was broken on Tuesday, the price of Ethereum has been declining. As of press time, the cryptocurrency trading price was $1,318.51, a 4.60% drop on the day.
The short-term price trend of ETH depends largely on the trend of the flagship cryptocurrency Bitcoin. This means that if BTC falls below the critical $34,000 level, ETH and other cryptocurrencies may suffer a huge correction. Similarly, if BTC recovers and soars to new highs, then Ethereum and other targets will usually start new growth.
In any case, Fundstrat’s David Grider believes that the world’s largest mainstream cryptocurrency will usher in huge gains in 2021.
