Cryptocurrencies such as Ethereum have struggled to bounce back after what was a steep, market wide sell off last week. However, Ethereum’s growth in 2021 alone equates to just north of 256%. It is clear that investors are taking cryptocurrency seriously, and corporations are starting to follow. We have seen large scale tech firms such as Palantir recently start accepting Bitcoin as a form of payment. With a new wave of investor interest, lets breakdown Ethereum’s outlook according to analysts.
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How is Ethereum performing?
Ethereum’s price has recently seen a pull back, alongside other cryptocurrencies such as Bitcoin as investors cash in on recent gains. Ethereum reached heights of $4,372.35 in early May, which occurred much faster than analysts expected. Ari Wald, Head of Technical Analysis at Oppenheimer noted on CNBC that the growth of Ethereum coin has been “outstanding”. However, the analyst warned that high volatility is to be expected in the near future.
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Bullish analyst forecasts for 2021
Looking ahead at the more bullish forecasts, we can see analysts are keying in on Ethereum hitting the $10,000 mark by the end of the year. For example, Megan Kaspar, the co-founder of Magnetic released a $8,000-$10,000 price target for Ethereum according to Yahoo finance. This bullish target represents a 200% upside from the current price. In addition, FundStrat also believes Ethereum will hit the $10,000 mark by the end of 2021. Lastly, YAP Global founder and CEO Samantha Yap also gave a price target of USD $10,000, cementing the bulls confidence in the midterm outlook of Ethereum. From the bullish targets above, we can see the general consensus target is around the $10,000 mark for 2021.
Bearish analyst forecasts for 2021
When analysing forecasts from analysts, it is fundamental to acknowledge both the bullish and bearish cases. In the contrary to the bullish outlook, JP Morgan analysts led by Nikolaos Panigirtzoglou noted that Ethereum should be currently trading at the $1,000 mark based on network activity. The bank said institutional interest and network changes are the main driver in the recent bullish run. However, JP Morgan did note that the news of the European Investment Bank using Ethereum to issue $121 Million in digital notes was “significant” for the crypto currency.
In summary, the crypto-economy is evolving rapidly. The recent success this year of Ethereum and other Alt-coins has created a new wave of sentiment not yet seen in the crypto market. For Ethereum, the bullish forecasts are a positive sign for investors looking mid term. However, with greater interest and volume will also associate a greater risk to the investor.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Tyger Fitzpatrick, Founder of Youth Investment Group.
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