Today President-elect Joe Biden will unveil his stimulus proposal in hopes of further boosting the economy and addressing the impacts of Covid-19. Bitcoin (CCC:BTC), which recently hit all-time highs above $40,000, could soar once again. But for cryptocurrency bulls, ethereum (CCC:ETH) is way more interesting. With that in mind, what is out there in terms of ethereum price predictions?
To start, investors should be familiar with where these ethereum price predictions come from. Essentially, macroeconomic catalysts have been lining up in favor of cryptocurrencies. Stocks are rallying, stimulus measures are in place and a quick glance at the headlines will invoke fears of an apocalypse. With that backdrop, bitcoin doubled in less than a month.
Importantly, those catalysts are still in place for bitcoin. In fact, InvestorPlace analyst Matt McCall has predicted the leading crypto could take out the $100,000 level in 2021. Other analysts have set price predictions above $150,000 and $300,000. However, many investors are turned off by the high price tag, and they may not know about fractional buying options.
According to CoinDesk, that is where a handful of other cryptocurrencies like ethereum come in. Like bitcoin, ethereum is currently trading close to its all-time highs. Unlike bitcoin, ethereum currently trades hands for just over $1,200. For crypto bulls that want to get in on the rally, that makes it an appealing opportunity. Knowing this, experts think a major “altcoin season” is on the way.
And in fact, many experts agree. That is why ethereum price predictions for the rest of 2021 see more gains and a new all-time high in sight.
2021 Ethereum Price Predictions
So what ethereum price predictions should you keep in mind?
Importantly, ethereum is close to its all-time high of $1,391.74. However, because the catalyst behind cryptocurrencies are still in place, many experts are confident that a new high is just around the corner. What do I mean? Well just as a rush of mainstream support drove bitcoin higher, InvestorPlace Markets Analyst Tom Yeung recently highlighted the support behind ethereum. Adoption is spreading on PayPal (NASDAQ:PYPL) and other platforms, meaning ethereum has a chance to catch up to its big bitcoin brother.
Looking to the future, it seems safe to bet that this mainstream support will only continue to grow. In terms of ethereum price predictions then, consider this from Yeung:
“That makes the cryptocurrency’s valuation more of a popularity contest than a technical exercise, at least in the short term. The cryptocurrency could easily double to $2,500 in 2021 if more users keep jumping on board.”
Although Yeung also highlights the risks that ethereum could hit $500 if the market goes south or a hack disrupts confidence, things seem bright. If you are confident in what is underpinning the crypto rally, make sure to consider ethereum and some of its smaller peers.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.