Home News Ethereum will cost $ 5000 at the end of May? Why not

Ethereum will cost $ 5000 at the end of May? Why not

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Ethereum is up 17% over the past week. In addition, on April 15, the cryptocurrency updated its all-time high at $ 2.48. This happened against the backdrop of the release of the new Berlin hard fork.

The update contains four proposals for improving Ethereum, including a change in the algorithm for calculating the cost of transaction fees on the network, as well as new types of transactions. Berlin is one of the blockchain updates to Ethereum 2.0. Ethereum is one of the most significant blockchains for the decentralized finance market. According to analysts, the latest altcoin updates to historic highs are a natural recognition of the platform’s merits by the market.

Potential for growth

The community violently met a new record and, of course, many analysts began to predict further growth. Not only for Ethereum, but for the entire altcoin market in general.

Analysts expect that Market value of Ethereum to Realized value (MVRV) to rise 5x by the end of May. Thus, based on the current realized value of $ 802, this implies an increase in the market price of Ether to around $ 5,000, and, accordingly, a price increase of more than 100%. Moreover, as more buyers enter the market, the realized value is expected to rise over time. Only last month it increased by 15.1%.

Ethereum 2.0 and the success of DeFi

The growth of quotations of the largest altcoin in terms of capitalization is accompanied by a continuing influx of users into DeFi services, which are built mainly on the Ethereum blockchain.

Experts believe that if the blockchain upgrade to Ethereum 2.0 continues with the same success, then $ 5,000 per digital coin by the end of May is a very realistic scenario.

Correlation with Bitcoin

Analysts explain: if we analyze, then we can see that Ethereum follows the first cryptocurrency in the overall market dynamics. Consequently, while Bitcoin is growing, Ethereum will also rise in price. But, when the first cryptocurrency enters the correction phase, this may affect the altcoin as well.

According to experts, after the correction, Bitcoin within a year and a half may well reach the $ 100 thousand mark. So that Ethereum (including due to improvements in platform processes) facing serious growth.

However, there is also an opposite opinion, according to which Ethereum doesn’t have a clear reference to the main cryptocurrency, so a digital coin can reach $ 5 thousand and even more, regardless of the cost of Bitcoin.

It should be noted here that on the morning of April 15, the Ethereum rate on the Binance crypto exchange updated its historic maximum at $ 2.48 thousand. That is, over the past day, the cryptocurrency has risen in price by 4%. At the same time, the price of Bitcoin fell by almost 2%, to $ 63.1 thousand. Recall that the analysts of the Kraken exchange also admitted that the profitability of Ethereum will surpass that of Bitcoin, and the price of the coin will exceed $ 15,000. Traders cite Ethereum as the main growth catalyst for the altcoin market. Moreover, many traders in recent months have largely switched their strategy from the first cryptocurrency to Ether.

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