The price of Ether, the world’s second-largest cryptocurrency, surged to a new all-time high above $3,500 on Tuesday, reflecting the growing interest and momentum behind this digital asset. The cryptocurrency’s remarkable performance in 2021 has outpaced that of Bitcoin, with investors showing strong enthusiasm for the Ethereum network.
Analysts at the Kraken exchange have identified a significant level of momentum behind Ether, predicting that the cryptocurrency could reach as high as $5,200 before encountering any major resistance, based on technical chart analysis. On Tuesday, Ether soared by 9.8% to reach $3,456.10, hitting an intraday peak of $3,519.60 after posting a remarkable 37% gain over a seven-day period.
Notably, Ether’s year-to-date gain stood at around 363% on Tuesday, compared to Bitcoin’s 87% rise during the same period. This outstanding performance has garnered increased attention from investors who are becoming increasingly interested in Ether and the Ethereum network due to the wide range of applications and use cases it offers. Ethereum’s capabilities, such as smart contracts, have found applications in various sectors, making it an attractive platform for non-fungible tokens (NFTs) and decentralized finance (DeFi) projects.
According to Nigel Green, the chief executive of financial consultancy deVere Group, Ethereum’s scalability, diverse solutions, and superior blockchain technology make it a compelling choice. He emphasized that compared to Bitcoin, Ethereum is better positioned to offer practical applications and solutions across multiple industries.
Kraken’s analysts have also underlined that Ether still has potential for further growth in the medium term, based on historical trends. They pointed out that Ether’s market share in the crypto world has remained relatively stable at around 13.5%, indicating that there is still ample opportunity for Ether to continue its upward trajectory. They specifically mentioned that according to historical patterns, Ether’s next significant resistance level is expected around $5,240, with support at $2,811.
In conclusion, the growing momentum and interest in Ether, as evidenced by its record-breaking price surge, reinforce its position as a strong contender in the cryptocurrency market. As investors increasingly recognize the potential of the Ethereum network and its diverse applications, Ether’s value proposition continues to attract significant attention and investment.