Ethereum is actually outperforming Bitcoin in 2020. The price of the leading cryptocurrency is up to $460 as of this article’s writing, but peaked at even higher levels in the summer.
Even after this rally, the coin remains far below its all-time high price of $1,450, set in the peak of the bubble in early 2018.
Analysts think that Ethereum could surge past that all-time high in this cycle, though.
Ethereum Has Room to Rally, Says Quant Analyst
One crypto-asset quantitative analysis, with a PhD in engineering, recently stated that he thinks the cryptocurrency could move toward $10,000 in the following market cycle. Referencing the chart below, which depicts this scenario playing out over the next three to four years, the analyst stated:
“If $ETH continues on in this manner and is in fact one market cycle behind #BTC, then we make peak at approximately 1,000% above the fair value in a few years. If this happens in say, 2023, then this could put a theoretical peak just shy of a modest $10k per #ETH.”
Chart of ETH's price action since it began trading with an anaylsis by crypto trader Into the Crypto Verse (same handle as name on Twitter).
Not the Only One That Thinks So
Chris Burniske is another prominent bull on Ethereum. While he doesn’t exactly expect a rally to $10,000, he does expect a move toward $5,000 and potentially beyond in this upcoming cycle.
Commenting on how Bitcoin could actually under pace ETH this cycle, the partner at Placeholder Capital commented:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs.”
Burniske did note, though, that the cryptocurrency will face competition from other smart contract chains:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs. Ethereum’s #DeFi boom, and the current #NFT craze, are fueling the need for other SC protocols to take some of the load. As much as high gas fees signal the value of Ethereum, they also signal the need for things other than Ethereum. Layer-2s + 2.0 won’t fix this entirely.”
He doesn’t think that this will seriously hamper the growth of Ethereum, though.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Quantative Analyst Says Ethereum Could Hit $10,000 This Market Cycle