If Bitcoin Clears $70,000, How Fast Will Ethereum Ease Past $5,000?
05 Marzo 2024 - 1:00PM
NEWSBTC
As Bitcoin surges towards its all-time high (ATH) of nearly
$70,000, analysts are closely watching Ethereum, the world’s
second-largest cryptocurrency, wondering how quickly it will follow
suit and break its record ATHs of approximately $5,000 printed in
late 2021. How Will Ethereum React When Bitcoin Breaks Above
$70,000? One analyst, posting on platform
X, highlights the difference in the two coins’ positions
compared to the last time Bitcoin broke above 2017 highs of $20,000
in December 2020. Then, Ethereum was trading at $600, a full 57%
below its previous ATH of about $1,400. As Bitcoin nears its
record peak of around $70,000 registered in December 2021, Ethereum
is approaching $4,000. However, the difference between then and now
is that ETH is about 36% shy of its ATH of around $5,000.
Related Reading: Bitcoin On The Brink, Price Soars Above $68,000 –
Will BTC Break Its 2021 Record? The question in the analyst’s mind
is, considering historical performance, how fast ETH will ease past
$5,000. When Bitcoin broke above $20,000 in late December 2020, the
analyst notes that it took approximately two months for ETH to
sweep past $1,400 and record new highs. The boom after this
breakout lifted ETH to around $5,000, accelerated mainly by retail
activities cycling around decentralized finance (DeFi) and
non-fungible token (NFT) minting. Looking at the Ethereum price
action in the daily chart, it is clear that buyers are in control.
ETH prices, CoinMarketCap data reveals, are up roughly 7% in the
past 24 hours and 15% in the previous week. However, how quickly
ETH might repeat the prior 2020-2021 feat remains to be seen.
Exploring ETH’s Chances Like in the past, the Ethereum price action
benefits from the Bitcoin expansion. The revival in Bitcoin prices
has seen capital flow to Ethereum, priming its broader ecosystem
comprising DeFi and NFT protocols. DeFiLlama
data shows that Ethereum manages over $56 billion worth
of assets. Notably, almost all top DeFi protocols in Ethereum,
including Lido, Maker, Uniswap, and EigenLayer, have posted strong
inflows in the past day, week, and month. Aside from market-related
factors, Ethereum prices are also steadied by hopes around the
eventual approval of a spot Ethereum exchange-traded fund (ETF).
BlackRock is among the leading asset managers to file with the
United States Securities and Exchange Commission (SEC).
However, the agency postponed a ruling on BlackRock’s application
for a spot Ethereum ETF, citing concerns about the network’s new
proof-of-stake consensus mechanism. The SEC expressed worries that
staking, a core aspect of proof-of-stake, could create
opportunities for manipulation. Related Reading: Shiba Inu
Price Skyrockets 45%, Surges Past $0.000045: Here’s Why The clear
reservation regarding proof-of-stake cast a shadow on Ethereum’s
near-term outlook despite the current uptick in prices. Still, the
community finds relief realizing that the Commission rejected
approving a spot Bitcoin ETF for roughly ten years before January
2024. Feature image from DALLE, chart from TradingView
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