Ethereum breaks through $1,000 – Bitcoin remains at $33,200
On days when BTC was up 5-8 percent in December, Ethereum moved flat at times, consolidating around key support levels as capital focused mostly on Bitcoin. Many attribute this to institutional support for the crypto market accumulating primarily in Bitcoin.
However, Ethereum has finally done it, outperforming BTC after the leading cryptocurrency began to consolidate in the $33,000 range (Go to Buy Bitcoins Guide).
Ethereum experiences a strong reversal
Ethereum has risen from $750 to over $1,000 in the last 24 hours and has gained 31 percent against the US dollar. While ETH cracked the $1,000 mark, leading cryptocurrency Bitcoin has risen over 20 per cent by Bitcoin Rush in the last 24 hours and around 30 per cent in the last 48 hours alone.
The ETH rally comes at a time when Bitcoin has stalled somewhat. BTC has fallen slightly in the last few hours as capital has started to shift into altcoins. However, this was not really unexpected.
Matt Kaye, the managing partner of Blockhead Capital, posted the tweet seen below earlier this weekend. This shows that Kaye thinks if Bitcoin consolidates, Ethereum could shoot higher.
Prominent analyst “Light” also recently said he thinks now is the time for altcoins to outperform bitcoin.
A strong 2020 ahead
According to Andrew Keys, a former executive at ConsenSys, Ethereum is likely to do extremely well in 2021 due to ETH2 and the continued growth of decentralised finance:
“The Eth 2.0 upgrade will catapult the network’s performance and attract even more attention from corporates and institutional investors, driving the price of the Ether currency to new heights.”
He added that he thinks the total value locked in the decentralised financial space will grow to $150 billion.
“It is undeniable that Ethereum is the home of the majority of decentralised financial activity. But other networks will enter the space in a more material way, using other native tokens in Ethereum’s DeFi ecosystem. With the various tokenised bitcoin options (tBTC, ren, wBTC) becoming more popular, we’ll see bitcoin’s $430 billion market cap collateralised in DeFi.”