Whales are Putting Money in Ethereum (ETH) Forecasting Its Rally

Whales are Putting Money in Ethereum (ETH) Forecasting Its Rally

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The protracted bitcoin correction is forcing investors to look for new opportunities to earn money. Meanwhile, Ethereum is setting new historical records.

ETH has renewed its all-time high, reaching $1,475. Bitcoin at this time is balancing in the $32K – $34K corridor. Some experts even claim that it won’t grow to $40K again in the short term. The reason is primarily because whales are flooding money out of BTC and investing in ETH in the hope of a rally. Crypto strategists at investment bank JPMorgan said that demand for BTC from institutions has dropped so much that the market will inevitably decline. They mentioned the data from the Grayscale Foundation. More than $21 billion was invested in bitcoin through the Foundation Now the investments have stopped. There is every reason to believe that the money is put in Ethereum. After all, the largest altcoin in three days has risen in price by almost 40% and set a new price record. The share of ETH in the market is constantly growing too, now it has exceeded 16%. At the same time, Bitcoin Dominance is constantly declining, now the share of bitcoin is about 62%.

Nothing new has happened in assessing the prospects for ETH, the coin is growing on the expectations of ETH 2.0 and also due to the popularity of decentralized finance. Its growth potential is very high. According to David Grider, strategist at Fundstrat Global Advisors LLC, ETH may rise to $10,500 in 2021. From a crypto industry perspective, Ethereum could outperform bitcoin after being updated if the throughput of 100K TPS will be reached. With this performance, Ethereum 2.0 will be able to surpass fiat payment systems and become the basis for the infrastructure of cryptocurrency payments.

Already, DeFi services built on the Ethereum blockchain are attracting high interest from users. After all, with DeFi one can make payments, open deposits and take loans directly without going to exchanges. Based on the combination of factors, ETH is becoming the most attractive asset for cryptocurrency investments. And this is exactly what is happening now: investors are flooding money out of BTC and investing in ETH. The risk of an unsuccessful Ethereum update remains, but it is less than risk of investments in other altcoins.

In general, other analysts support David Grider’s forecast. In particular, Amsterdam exchange trader Michael van de Poppe also suggests that the rally in ETH will lead to a price of at least $5K, and it is possible that it will reach the level of $10K. Popular crypto investor Raoul Pal and analyst Cred also point to a possible rally in Ethereum. However, Cred claims that the best earnings will come from DeFi projects, and ETH is interesting for investments only for a short time period.