Is Ethereum about to explode?
After the bitcoin hit twice it's all-time high and getting rejected, and ethereum taking a bit of a hit, what does this signify for altcoins? Is ethereum the next bitcoin? Last night we saw a correction from the $40,000 level which was both a Fibonacci retracement level and a psychological level. We say psychological because it is double of its previous all-time high not too long ago. Since then the bitcoin has had a major rally and hit the $40,000 level yesterday.
Yesterday, the bitcoin corrected down to the $36,000 level but hasn't undergone the major correction of up to at least 20-30% that we've been expecting based on previous charts. And it is due to it soon. A lot of people have recently been very interested in Bitcoin, it is getting bought almost up quickly. This is a major part of what keeps driving the bull run, but we need a healthy correction at some point for the bitcoin to move into an upper level. It could keep going at this rate and hit up to $50,000 or even more. It is difficult to predict what is going to happen at this point.
There is a mass institutional investment in Bitcoin right now, even the coins that got dumped in the correction yesterday were almost immediately bought up. I see at every dip that investors seem to be waiting on the sideline to get into the market. This kind of behavior is what makes it somewhat difficult to predict the next move of Bitcoin. We could see it going higher, even hitting up $100k possibly.
Ethereum on the other hand is easier to predict. Even with all the gains bitcoin is making, including doubling its previous all-time high, ethereum has outperformed it. Bitcoin performed at 34% and bitcoin at 62%. This happens because ethereum has a smaller market capitalization than bitcoin so it's much easier for it to make bigger moves. It can provide much larger gains than bitcoin. Ethereum too is still 20% away from it's all-time high while bitcoin has already doubled its all-time high. As the addresses grow, it grows too. It is interesting to note however that ethereum is growing faster than bitcoin did when it was in the same place ethereum is now. Ethereum is increasing in mass and market capitalization much faster than bitcoin is. Ethereum might go to $20,000 this cycle.
Right now there are over $21billion locked in ethereum. Just as bitcoin grew from specialties into real value, I believe ethereum is very similar.
