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Ethereum price aims for $5K after reaching 3-year high versus Bitcoin

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Ethereum hit a new all-time high of over $ 4,300, paving the way for up to $ 5,000 in revenue. In the near future, the price of an asset may renew its historical maximum again, analysts are sure.

Ethereum has peaked despite the fact that the price of Bitcoin continues to be volatile. The more active growth of Ethereum can be explained by the higher rates of development and renewal than that of Bitcoin, analysts say. In their opinion, investors are eagerly buying cryptocurrencies, which show constant development.

Ethereum growth factors

According to network analysts, even at the current price level, ETH is undervalued. Triple halving is expected to drive up Ether prices as it will reduce pressure from miners by 90%.

In addition, the growing popularity of DEX will increase the number of daily transactions on the network, largely due to the market makers SUSHI and UNI. Over the past 12 months, DEX trading volume totaled $ 432 billion, with over 2 million addresses traded on them.

Experts also call the expectation of the July EIP-1559 update, which will allow burning part of the miners’ commissions, as one of the main factors in the current momentum of altcoin growth. High fees are a serious deterrent for new projects, which is why they are more willing to choose other blockchains. An update will fix this.

In the long term, a serious rise in the Ethereum rate is expected, by some estimates by hundreds of percent. It is worth waiting for a local correction by 5-10% and opening a long-term position. Medium-term growth targets for ETH until the end of this year are at $ 5,000.

Ethereum mining profitability growth

Ethereum miners have overtaken Bitcoin miners in profitability over the past few days. Altcoin miners now earn about $ 77 million daily, versus $ 67 million received by the main cryptocurrency miners. Earlier, Ethereum mining has already surpassed Bitcoin mining in terms of profitability. This happened in late April and early February this year.

Analysts associate the growth in the profitability of Ethereum mining with the rise in price of the altcoin itself and the increase in transaction fees on the network.

Popularity among investors

The cryptocurrency continues to gain popularity among investors, both retail and institutional. For institutional traders, Ethereum has established itself as an alternative to Bitcoin, especially as its price soared to new highs.

With decentralized finance (DeFi) continuing to evolve in 2021, Ethereum could indeed reach even greater heights. Recently popular analyst Nicholas Merten called Ethereum the best project to watch in 2021. The analyst predicts that the cryptocurrency will rise to $ 10,000 by 2022.

Ethereum creator Vitalik Buterin has already become the youngest cryptocurrency billionaire in the world. Last week, his fortune reached $ 1.09 billion. Buterin’s cryptocurrency wallet contains over 333 thousand tokens. Since the beginning of last year, the fortune of the creator of Ethereum has grown almost 25 times.

Opposing opinions

Earlier, analysts at investment bank JPMorgan said the altcoin price should be 75% lower than the current market price. According to experts, $ 1,000 is the fair value of a cryptocurrency based on the computing power of its network and the number of unique active addresses.

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