Ethereum course (ETH) was invented by Vitalik Buterin and is a large blockchain for smart contracts, dapps and even token creations. The picture shows a metal coin of Ethereum in front of a price curve.
Bitcoin price is approaching $ 16,000 after hitting $ 15,960 on Binance. After the rally of the dominant cryptocurrency, analysts are now looking at Ether (ETH). The native token of the Ethereum blockchain has seen increased momentum in the past week. After underperforming BTC in October, the likelihood of a new Ethereum price rally is starting to rise.
There are two main reasons why analysts expect ETH to perform well in the near future. Here and now we will explain what these are.
Since October 21, the Bitcoin price has risen by about 33%. He broke out of key areas of resistance. One at a time they had to go, starting with the one at $ 13,000.
When the Bitcoin price exceeded $ 13,000, large whale groups formed at this level. It was revealed that the whales began to actively accumulate BTC, which resulted in $ 13,000 becoming a support zone.
After the Bitcoin price reclaimed $ 13,000 as a support level for the first time since July 2019, it continued to rise. Over time, he confirmed $ 13,500 as the next level of support, followed by $ 14,000 and finally $ 15,000.
Many analysts believe that the Bitcoin price increase is negative for Altcoins. Bitcoin dominance rose steadily and sucked up a large part of the volume from the crypto market. As a result, many altcoins depreciated against both BTC and the US dollar as Bitcoin rebounded .
In short, the Bitcoin course run from October to early November took a tough toll on the altcoin market, but BTC’s price action has shown that bull sentiment has returned in the cryptocurrency market. This could help. lead to more capital being extracted from the leading cryptocurrency in order to seek greater earnings opportunities in the altcoin market, to which ETH also belongs.
Denis Vinokourov, head of research at Crypto Exchange and broker Bequant, believes that capital from Bitcoin could flow into Ether and the Ethereum ecosystem . The decentralized financial market has developed particularly strongly in the last 48 hours after stagnating since the beginning of September.
DeFi tokens such as Yearn.finance’s YFI and Uniswap’s UNI rose by almost 30% after the abrupt recovery in the Ethereum price. Therefore, Vinokourov emphasized that the broader Ethereum ecosystem could soon benefit from the strong Bitcoin course:
All eyes may be on Bitcoin and the surge past the $ 15,000 mark. However, the recent development update regarding Ethereum could see some capital flowing back into Ethereum and its wider ecosystem. That’s not to say that Bitcoin is actively being sold, but the trend to include Bitcoin on the Ethereum network could accelerate and be leveraged via oversold DeFi and DEX tokens like Uniswap.