Ethereum (ETH) Strives to Lead the Market And Has Ruined Traders

Ethereum (ETH) Strives to Lead the Market And Has Ruined Traders

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New Year’s predictions are beginning to come true, and with great speed. Until recently, it seemed too bold a prophecy that the price of ETH will exceed $1K, but today Ethereum price has risen above $1130. A short way is left to the all-time high of $1400, which was set in January 2018.

Late last year, there were bold opinions that ETH strives to become the leading cryptocurrency. And then it seemed like nonsense because Ethereum was 6.3 times lower than bitcoin as for capitalization. Now the difference is less than 5x. ETH dominance is almost 14%. This is, of course, significantly less than Bitcoin Dominance, which exceeds 68%. But it is important that ETH has a powerful uptrend, while BTC, according to many estimates, is expected to drop.

There are two opinions on why ETH soared now. First, Ethereum looks like a sweet spot between bitcoin and Ripple (XRP). Institutionals who were late to invest in BTC and those who withdrew funds from XRP in connection with its fall provoked by the SEC invested in ETH. The second reason for the growth of ETH is the good prospects for DeFi in 2021. There is every reason to expect that digital finance will repeat its success of last year. Most of these projects are launched on the Ethereum blockchain, which means they will also back ETH.

Just on the eve of the powerful takeoff of ETH, crypto strategist known as Smart Contracter stated that Ethereum has accumulated a sufficient base to make a powerful soar (“Ethereum is breaking out after nearly two years of base building”). Smart Contracter uses technical analysis to predict price movement. Based on an analysis of Elliott Waves, which reflects crowd psychology, Smart Contracter states with the ETH / BTC ratio in mind:

– It looks like the third wave. I just have a feeling this thing’s going to rocket up…

The third wave is the longest and most optimistic. From the point of view of technical analysis, it will now be easy to trade Ethereum successfully. But so far, traders who have traded ETH with leverage have lost $1.2 billion. The same story happened some time ago with bitcoin. Now exchanges liquidated positions of over 120 thousand users when ETH soared above $1,130 and then rolled back to the price of $1,000.

Obviously, the market now has two leaders, BTC and ETH. If bitcoin is losing ground, then Ethereum will continue to grow and will be able to update its historical maximum. However, there are supporters of bitcoin, who argue that its potential is far from being exhausted, and it could grow to $100K.