• Ethereum price continues to follow closely in Bitcoin’s footsteps in the third week of a bullish turnaround across the cryptocurrency market.
• Analysts seem to agree that Bitcoin price may have bottomed, and the relief rally in January could market the beginning of a bull run.
• Santiment on Twitter predicts that Ethereum could rise above $2,000 in the coming days or weeks.
As the cryptocurrency market continues to experience a bullish turnaround in the third week of 2021, Ethereum (ETH) is riding the wave of Bitcoin’s success and is experiencing a considerable surge in price. The past week has seen BTC price increase by 23% in seven days, trading currently at $21,159; meanwhile, ETH price is up 18.4% in the same period, trading at $1,564.
The current uptrend in Bitcoin price has been confirmed with a break above $21,000, with analysts expecting more liquidity to be collected before attempting to reach the prices of $24,000 and $30,000. Similarly, Ethereum price is holding its position above $1,500, sparking predictions of a potential rise to above $2,000 in the coming days or weeks.
The bullish outlook for Ethereum is shared by many analysts, with Rekt Capital, a pseudonymous analyst and trader, recently stating on Twitter that Ethereum is „pressing beyond the multi-month resistance right now“ and that it needs to „turn the black diagonal resistance into support.“ Santiment, meanwhile, has predicted that Ethereum could rise above $2,000 in the coming days or weeks.
At the same time, Profit transactions for Bitcoin have reached the highest levels since February 2021, while Ethereum transactions have reached the highest since October 2021. This could be seen as an indication that investors are taking the opportunity to profit take while they can.
The success of Ethereum has been attributed to the ongoing growth of the DeFi sector, which is seeing more and more investors flock to the platform in search of higher yield opportunities. The Ethereum-based platform is also currently undergoing a series of upgrades and optimizations, with the much-anticipated ETH 2.0 network expected to launch later this year.
With the potential of Ethereum 2.0 and the DeFi sector still on the rise, Ethereum may well be able to ride Bitcoin’s coattails to $2,000 and beyond. However, investors must remain wary of any potential setbacks or sudden changes in the market that could affect the future of the cryptocurrency.
