Ethereum Price Could Rally to over $1,200 in 2021
An analyst now projects the Ethereum price to conservatively rally to over $1k in 2021. Of note, ETH has been one of the top-performing digital assets, outperforming Bitcoin in the last seven months. Pumped by favorable fundamentals, the breakout above several resistance levels, and on-chain developments like the robustness of DeFi and the smooth transition may form the foundation for a rally back to $1k and even new highs in 2021.
Ethereum and Bitcoin prices are positively correlated. Although there are periods when prices misalign, traders often watch out for their price action. If this holds, it appears that ETH is under-valued now that the Bitcoin price is already at around its all-time high. With anchors backed by Eth2, Layer-2 solutions seeking to reduce Gas fees, and the platform dominant smart contracting being the home of DeFi, odds of even higher gains above $1k beyond the analyst's projection may be on the cards.
Impact on the ETH Price:
Bullish. Like Bitcoin, Ethereum prices have been steady, absorbing sell pressure in the last few weeks. Although the $600 level remains an obstacle, a break above this mark and 2020 highs of $640 could trigger more buyers, pushing prices to new 2020 highs.
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