With its immense rise in recent days, analysts are expecting Ethereum to reach a value of $11,000 in the near future.
After hitting a record-high $4,878 per token the past week, Ethereum's rise is considered reminiscent of a similar Bitcoin surge in 2017, Deseret News noted. Bitcoin at that time skyrocketed by 236 percent from $6,000 per coin to $19,000 in just one month.
Ethereum Seen to Mirror Bitcoin's 236 Percent Surge in 2017
As such, experts are looking at Ethereum to achieve a similar, quick trajectory. While no one knows for sure if it will become a bigger token than Bitcoin, Ethereum is still a top cryptocurrency for investors to focus their attention on. That said, investors should still bear in mind that such assets and the rest of the crypto market is highly volatile. Thus, they should invest with extreme caution and due diligence.
If it mirrors Bitcoin's 2017 surge, Ethereum is seen to soar to $11,000 per token in just one month. Some bulls even predict Ethereum to reach $19,000 with a 343 percent rise. Other factors seen to drive Ethereum to reach its goal is its being the standard blockchain for decentralized finance apps (DApps) and non-fungible tokens (NFTs) due to its support for smart contracts, and its massive developer base.
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However, this is seen as unlikely, given that Bitcoin is "one of a kind" and that Ethereum is "not the next Bitcoin," AMB Crypto emphasized in an article. Ethereum's rise was even "not strong enough to support a 343 percent rally in any way," the report added. As such, the expected 236 percent rise in one month seemed "doubtful."
In its strongest surge from August to November, Ethereum only rose by 174 percent in three months. As such, it is quite obvious that it won't rise by that much in just one month's time.
Add to that the plummeting value of Ethereum, Bitcoin and Polygon this week, it is not a good sign for ETH, The Motley Fool stated. On late Monday, ETH stood at $4,160.28, which represented a 64-percent drop, as per CoinDesk's real-time figures.
This continuing free fall is due to an expanded move by Chinese regulators in its Bitcoin mining crackdown. Bitcoin remains as a benchmark for the valuations of assets in the crypto space, and as such, any news that affects Bitcoin would have a domino effect on other top-draw cryptocurrencies, such as Ethereum.
Ethereum Still Expected to Break Out by End of 2021
Despite this, experts indicated that Ethereum could still have a bright future if it continues to stay above the $4,000 level. As a result, another bull run could happen, which would again bring Ethereum to record highs, Benzinga posted.
However, hopes for Ethereum to hit $11,000 remains high since that price level carries the highest demand from investors, especially 142,000 option contracts needing it.
As options for investors to buy or sell Ethereum at a strike price would expire in December, expectations for the token to hit $11,000 seems probable by that time.
