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Ether’s 1 500% jump is just the start for the crypto faithful

Ether rose 2.5% to $3 366 as of 8:18 a.m. in London.
Image: Bloomberg

Cryptocurrency enthusiasts are scaling up price targets for Ether after the second-largest token’s record-breaking run, an echo of the unbridled optimism that accompanied an earlier surge in Bitcoin.

The token affiliated with the Ethereum blockchain — a digital ledger popular for financial services and sales of so-called cryptocollectibles like online art — is up about 1 500% in the past year and hit a new peak of $3 455 on Tuesday.

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Listen: Ether breaks R50 000, creating a ‘once in a lifetime opportunity to build generational wealth’

The climb is stirring predictions of more gains ahead even as some technical indicators flash warnings that the rally may be overextended. Crypto proponents argue investors are now looking beyond Bitcoin to Ether and other tokens despite warnings of a stimulus-fueled mania in the sector.

“The market is realising how fundamentally undervalued Ether is given all the development activity on the network,” said Vijay Ayyar, head of Asia Pacific at crypto exchange Luno Pte. “While one may think Ether has risen a lot, when you compare it to Bitcoin, there is a long way to go.”

Ayyar sees Ether hitting $5 000 to $10 000 by early next year. Evercore ISI technical strategist Rich Ross has revised up his target to $4 100 from $3 900. Many traders are eyeing a run toward $10,000 before the end of 2021, Edward Moya, a senior market analyst at Oanda Corp., wrote in a note.

“Ether will have much volatility, similar to Bitcoin, but can increase in value as more institutional investors become aware of it,” Pat LaVecchia, chief executive officer of crypto broker Oasis Pro Markets LLC, wrote in an email. Ether at $25 000 is possible over the next few years, he said.

Optimists typically cite Ether’s use in applications on the Ethereum blockchain, as well as upgrades to the network to make it more efficient, as among the reasons for their bullishness.

In the futures market, Ether volumes are getting closer to those of Bitcoin contracts, even though CME Group Inc. only launched the former in February.

Still, there are indications that Ether’s rally is getting stretched. The token’s 14-day relative strength index has risen above 70 to the highest since January, signaling it may have climbed too far, too quickly.

Luno’s Ayyar said any run like Ether’s is bound to correct, but added that he views its long-term outlook as “very healthy.”

Ether rose 2.5% to $3 366 as of 8:18 a.m. in London, bucking a dip in the wider Bloomberg Galaxy Crypto Index.

© 2021 Bloomberg

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MoneyWeb, with it’s MW Crypto sub-section is quite funny:

It’s like publishing a Gun-magazine, but allow a back-section for the anti-gun lobby to raise their comments.

Or like a Church publication, allowing a platform also for Atheists to add their comment (…in case the publication may be wrong on the one view, they’d be correct with the other view) 😉

Double the readerships.

What’s interesting about MW’s approach, now the pro-Fiat camp (incl. supporters of traditional asset classes) can interact with pro-Crypto followers in a decent and respectful manner….buy grabbing each other at the throat! 😉

Or like an old white pages telephone directory promoting internet and website services.

Good point! Off topic, and back in the day when Telkom’s telephone directories were distributed to all, we had NO CHOICE whether our initials/surnames….with your PHYSICAL address…were published for all to see.

Fast forward 20 years, and now people as up in arms about WhatsApp/FB sharing certain behavioural meta-data for advertising revenue purposes *lol*

Mbabane-greetings!

So how much would my investment of hundred thousand rand invested in Ethereum be now when the crypto was hundred dollars sometime last year March 2020. What’s the bloody price now. even with all the horrendous price fluctuations the past years? I gather, based on proper analysis and research of technology trends, that by December this year the price will be $10 000 or more, due to the system’s network affect. Yes, there will be corrections, even a high chance of another horrendous crash, no doubt. Been through these crashes before, it comes with the territory, and the technology just seems to push ahead. Who said great change does not come with great scary upheaval inbetween? But, my goodness, opportunity abounds plenty in this space. If one can just puts some effort into understanding the space, and what is going on, how it works, instead of being cynical – the opportunity cost of being cynical in situations like this is just too high. Cheers, I need to go and check how my investment is doing.

End of comments.

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