January 21, 2021

Ethereum Price Explodes Past $1,100 as Bitcoin Stagnates

Ethereum is in the midst of rocketing higher despite stagnation in the Bitcoin price. Just minutes ago, the cryptocurrency pierced $1,100 after holding the $1,000 price level.

Chart of ETH's price action over the past few weeks from TradingView.com. ETH is now up by over 100% in the past 10 days due to the capital rotation from BTC into the altcoin market.

The cryptocurrency has since corrected back under $1,100 but remains up by over 36% in the past 24 hours. BTC is strongly underperforming in this latest leg of the bull market. Per CoinGecko, BTC is down 7.5% in the past 24 hours while Ethereum has gained nearly 40%.

This is a byproduct of Bitcoin profits cycling into altcoins at a rapid pace, which was something seen throughout 2017’s bull market.

Analysts expect this trend to continue as long as Bitcoin continues to consolidate between $32,000 and $34,000 as it did today.

A decisive break in either direction would likely end the ongoing price action that is currently playing out in the Altcoin

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Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Ethereum Price Explodes Higher, And More May Be Coming

Ethereum is expected to move higher in the days and weeks ahead as the market seemingly remains under-allocated to the cryptocurrency.

Matt Kaye, a managing partner of Blockhead Capital, recently said that he thinks ETH will soon move to a new all-time high and beyond.

He noted that institutions are starting to take notice of Ethereum while trends surrounding DeFi will further drive demand for the Coin

‘ href=”https://www.newsbtc.com/dictionary/coin/”>coin.

With Grayscale’s Ethereum Trust also soon reopening, ETH should continue to see an influx of demand, Kaye suggested.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: ethusd, ethbtc
Ethereum Price Explodes Past $1,100 as Bitcoin Stagnates