Ethereum Price Undervalued Versus Bitcoin, Institutions Focusing On BTC
- Ethereum price gains versus Bitcoin
- ETH/USD rise to new 2021 highs
- Institutions looking to pour billions into BTC
Trending News: Ethereum Price to New 2021 Highs, Institutions May Pour Billions into BTC
Bitcoin is dominant and closely watched.
However, from the look of things, this is about to change.
ETH/USD above $1.5k
The case here is the exponential rise of Ethereum.
The coin broke above $1.48k early this week, soaring not only above $1.5k but to over $1.7k as investors flew, pumping cash, looking to tap gains.
Pound-to-pound, and zooming in on the ETH/BTC chart, there is so much upside for ETH in USD terms that the coin, even at 2021 highs, appear grossly undervalued.
It may be a long-time before parity, but more traders—even analysts aren’t discounting ETH’s potential.
The smart contracting platform could prove better because of project-specific developments, especially from a user-experience point of view.
Lower fees translate to more utility, which is a massive boost for ETH as a base coin for paying fees.
Billions May Flow to Bitcoin by Close of 2021
Despite this explosion of Ethereum, Bitcoin is the leader, attracting institutional interest.
Michael Saylor is taking over traditional promoters of the network, taking his advocacy a notch higher. He has repeatedly stated that Bitcoin is the only plan.
Corporations seeking to venture into the digital world must first overhaul their balance sheets. It starts by liquidating part of their cash reserves to BTC since it is a store of value.
More funds from institutions are likely to flow into crypto, specifically BTC, by the end of the year.
The recent conference, not surprisingly, was over-subscribed.
It attracted Wall Street megaliths, including representatives from SpaceX, Pfizer, Disney, and more.
Outside of Ethereum, AAVE, and Cardano (ADA), surging DOGE and XRP prices dominated headlines.
Elon Musk is Pumping DOGE
The two are allegedly being pumped by, firstly, Elon Musk’s continuous shilling of DOGE. Secondly, rumors of WSB—and disgruntled investors buy into XRP.
These two are up double-digits in the last week of trading. DOGE has flipped several projects and is now at 12th in the market capitalization leaderboard.
ETH/BTC Price Analysis
For swing traders, price action in the weekly chart is more precise, revealing the status of ETH.
The ETH price is trading within a bullish breakout pattern above 0.389 BTC versus the digital gold, adding seven percent in the last week of trading.
ETH bulls are in charge. Every high could potentially be another loading opportunity for aggressive traders aiming for 0.05 BTC or better.
As the weekly chart shows, ETH is now trading at a two-year high versus the BTC with rising volumes. The close above Jan 2019 highs confirms the double bar bullish reversal pattern of late December 2020. With above-average trading volumes, buyers can load the dip with first targets at 0.055 BTC.
Notice that the reversal of last week’s bears meant bull bars banding along the upper BB. It shows high momentum in lower time frames and high pair volatility. These combine to back bulls.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.
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