TL;DR Breakdown
- Is Ethereum next Bitcoin is the question everyone is asking ahead of the CME Futures launch
- ETH/USD rises beyond $1,600 as investors accumulate the second-largest cryptocurrency
- Can Ethereum dethrone BTC as the king of cryptocurrencies in the next few years
- DeFi ecosystem and multiple real-world projects are supporting a bullish Ethereum scenario
ETH Futures’ launch on the Chicago Mercantile Exchange is fueling a ‘Fear of Missing Out’ rally in ETH/USD. Investors and traders alike are accumulating Ethereum in anticipation of fresh new highs beyond the recent peak of $1,698. To some extent, last week’s tussle between Reddit traders and conventional Wall Street players is also contributing to the FOMO factor in BTC and ETH.
Ethereum prices have risen approximately 128 percent in 2021 alone. Yet, traders and investors are predicting more upside in the second-largest cryptocurrency. After hitting a high of $1,698, the ETH/USD pair is currently consolidating lower. At the time of writing, the price is trading at $1,656 and marginally below the recent highs.
The continuing bullish momentum and various positive news on the fundamental front have contributed to the explosive rally in ETH/USD. Whether it is speculative or based on sound technical factors, Ethereum being the next Bitcoin is a query on every crypto fan’s mind.
Ethereum price movement in the last 24 hours – ETH stuck in a tight range but biased higher
Ethereum is currently trading within the safe confines of the Bollinger Bands. The price is oscillating between the $1,520 to $1,690 range. The technical indicators have cooled down after the recent run-up to fresh new highs.
As per Paolo Ardoino of Bitfinex, the current rally is a culmination of many factors that are part of the larger Ethereum ecosystem. To further fuel Ethereum next Bitcoin frenzy, many analysts predict higher price targets of up to $1,920 once the CME Futures launch is complete.
The past few days’ price action also comes courtesy of the rising interest of the institutional investors. The Ethereum next Bitcoin rumor has some origins here. The increasing influence of Ethereum-based technologies in the cryptocurrency sphere has attracted many large-scale institutional investors to the ETH fold. No wonder the total crypto market cap touched $1 trillion last month.
ETH/USD 4-hour chart – All set for fresh highs above $1,700
Currently, the Ethereum price is moving in a consolidation pattern. Buyers are emerging at lower levels confirming the upward bias. RSI has cooled off from overbought levels and is presently near 66 levels. The MACD indicator is also showing a bullish uptrend as the crossover is reflecting buyer strength. The current upside is further supported by the 100-day SMA, which is now relatively below the current ETH price.
A series of lower highs shows that the price is charting a new bullish course higher. The all-time high of $1,698 is within reach on the hourly charts. Lower supports have moved up on the daily charts. The weekly charts show significantly expanded Bollinger Bands, which target $3,000 in the long run.
Immediate support lies at $1,590 and then at the $1,510 level, and the price will stabilize here in case of a sharp downturn. Hourly charts will be the first to confirm Ethereum next Bitcoin rumors.
Is Ethereum next Bitcoin – How the events may unfold
So, we finally come to the question – is Ethereum the next Bitcoin. Last week, financial giant Grayscale Investments bought 25,000 ETH to its enormous $4.5 billion ETH portfolio. It shows the rising acceptance of Ethereum in traditional financial circles. These events are similar to what Bitcoin experienced before it skyrocketed to $42,000 highs. When traditional financial giants pursue a coin, they do so on a sound fundamental, and technical basis.
Centralized finance puts faith in trusted assets, and Ethereum is their latest favorite child. The rise of Bitcoin featured similar large-scale purchases from institutional investors. Thus, the Ethereum next Bitcoin rumors are not founded on speculation alone. The dominance of ETH in ‘Decentralised Finance’ is another primary reason why ETH/USD is rising. The high yield earning opportunity helps Ethereum carve its own niche space in the financial realm.
The launch of ETH 2.0 will further help improve the technical infrastructure of Ethereum. More affiliated blockchains in the future can help ETH secure a place in the crypto hall of fame. Bitcoin Futures play a massive role in price movements of BTC/USD. With ETH Futures launching on CME, the ETH/USD pair will also benefit from the futures market’s enormous liquidity.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
