The Ethereum price is, like Bitcoin, charting a new path, rising to an all-time high above $1.8k.
A feat, Ethereans are optimistic, forecasting loftier price targets as institutions accumulate, sinking billions into the coin that powers the first and popular smart contracting network.
Overly, the path of least resistance is northwards.
Analysts predict the Ethereum price to not only breach $2k in coming weeks but to soar towards crucial resistance levels at $5k and $10k in the medium term. These targets may seem untenable at spot rates.
However, considering the development pace in the project and the expansion of DeFi, this price target isn’t far out.
BTC and ETH Market Caps Now Above $1 Trillion
With the BTC/USD scaling new heights above $48k on Feb 9, traders are pouring in on ETH considering its under-valuation, especially from the candlestick arrangement in the ETH/BTC daily chart.
With ETH and BTC roaring, their combined market cap is above $1 trillion. It highlights just how dominant they are despite the foundational challenges associated with the Proof-of-Work consensus algorithm.
It has an impact on scalability that in turn affects Gas fees.
Shift to Layer-2 to Tame Prohibitive Gas Fees
As a demonstration, the average Gas fee on Feb 9 stood at over $20—a more than 4X rise over two months. At this rate, observers now say Ethereum should fast-track the development of Layer-2 solutions.
Already, some leading DeFi projects have shown their intention of adopting Optimistic Rollups. The widespread use of Layer-2 will relieve the Ethereum base layer, help push down Gas fees, and concurrently improve user experience.
Ethereum Price Prediction
The ETH/USD is relatively stable on the last day and up double-digits in the past week of trading, adding 22 percent.
As of Feb 10, the ETH price is trading within a bullish breakout pattern versus the greenback. Prices are oscillating at around an all-time high, pointing to demand in lower time frames.
For ETH bulls, every dip presents a loading opportunity. However, this as long as prices range above Jan 2021 highs of around $1.48k. If that’s the case, the immediate bull target is $2.1k, the 1.618 Fibonacci extension level of Dec 2020 and Jan 2021 trade range.
Conversely, a break below $1.48k and the middle BB with high trading volumes open up the ETH/USD price to $1k on the lower end, invalidating the uptrend.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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