A sharp jump in the Bitcoin rate ended with a fairly large-scale correction. Following its upward movement, the rates of other coins also increased and then fell. Ethereum price moved to a record high of $2,036 on February 20 and then fell by 30% in just a few days. In this article, we will talk about possible scenarios for the ETH cost in 2021. Read on to know more on Ethereum Moving to New All-Time High as Bitcoin Rally Continues.
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Positive trends in Ethereum development
Ethereum can turn out to be the main coin of 2021 in some private investors’ opinions. Analysts predict an upward trend for this coin in the long-term, primarily due to the moving to the second network version (Ethereum 2.0). This up-and-coming crypto heavyweight will have a staking feature to generate passive income simply by keeping Ethereum in a wallet.
On the one hand, investors purchase some coins for staking. On the other hand, they will start creating pools, pulling the coin out of the market space. The fewer coins, the less speculation, which is a direct way to harmonious growth.
The second positive thing for Ethereum is the stable and consistent development of cryptocurrencies running on its blockchain. Ethereum Moving to New All-Time High as Bitcoin Rally Continues.
Another positive trend is the growing popularity of decentralized finance (DeFi). It also uses Ethereum technologies.
The network of Ethereum attracts the vast majority of developers looking to create something based on blockchain and smart contracts.
Ethereum has a large user base, thus, it’s number one for developers. ETH-based browser wallet Metamask alone has over 1 million active users.
The creators and developers of this project maintain the Ethereum ecosystem. For instance, they sold about 70,000 ETH at its previous high point (at about $1,400), as Vitalik Buterin states. Thus, the project received about $100 million. They were directed at the expansion of the ecosystem.
Many projects developing in the Ethereum ecosystem and on the blockchain receive significant grants and financial support for their products. Nimbus received 650 thousand dollars, ConsenSys sponsors more than 25 projects with more than 330 thousand dollars, and so on.
Last year, the Ethereum Enterprise Alliance, Unibright, and ChainLink announced the creation of a new working group. It will concentrate on Ethereum network integration for enterprises. It may help attract businesses from private networks to the public ETH network.
How does Bitcoin affect Ethereum’s forecast?
One of the loud things that happened in the winter of 2021 was Ethereum ceasing dependence on the headliner of the global crypto market. Previously, any Bitcoin drawdown caused a protracted drop in Ethereum. The same stuff happened when the rate increased. Now, experts believe, there is a situation where Ethereum can and should show its strength. Besides, the forecast for its rate is less dependent on the “big brother”.
It is natural that with the rising popularity of Ethereum, more and more people will want to get a chance to try and raise some wealth on this cryptocurrency. Some may wish to exchange their Bitcoins for Ethereum. To do that, you can use a cool BTC to ETH calculator on Godex. This anonymous crypto exchange is trusted and acknowledged in the market as a convenient and transparent service provider.
Ethereum rate forecast for 2021
While analysts talk about the prospects for ETH, the creators of this project have shown their willingness to cooperate with powerful traffic generators.
Reddit, a popular forum with a built-in voting system, has claimed a collaboration with the Ethereum Foundation blockchain project. Together they will be looking for solutions to scale the blockchain.
The partners will engage in scaling the project. They will also advance the technologies necessary to run large decentralized applications like Community Points. With Community Points, users of the r/Currency and r/FortNiteBR can earn cryptocurrency for participating. They could receive ERC-20 tokens for high-quality content.
Reddit claims they have already started looking for backend developers. Such cooperation can provide local support for the rate. It may also open up prospects for the growth and consolidation of the crypto at $2,000 and higher further.
Over 50 million users visit Reddit daily. The announcement of cooperation with the Ethereum Foundation was another positive factor for the cryptocurrency. The recent price rise was caused by this news, among other reasons.
It appears that Ethereum has good prospects for 2021 as well as rather positive long-term prospects. The project includes high-profile partnerships. Vitalik Buterin’s team is very close to launching version 2.0, and a bullish trend is observed in the market. Besides, more and more new Ethereum wallets are appearing daily. High-profile experts are expecting explosive growth for the blockchain once it switches to Proof of Stake protocol consensus.
It doesn’t make sense to make any rate predictions, since no one knows what will occur in the crypto industry in the future. Fundamentally, we can observe that Ethereum price moving high has every chance to compete for first place in the cryptocurrency rating as the bitcoin rally continues.