01.05.202117:30 Forex Analysis & Reviews: Ethereum is starting to catch up with Bitcoin

As we have said in recent articles, the fundamental background for bitcoin remains quite complex. Simply put, there is no real positive news for cryptocurrency right now. We do not believe that the announcement of future purchases of bitcoin with reserve funds by Microstrategy is really important and positive news. Moreover, the press release also contains information that the company can sell a certain share of bitcoin. It seems that the software developer is just trying to catch up with a new hype so that the cryptocurrency will rise in price even more.

Meanwhile, TV star and investor Kevin O'Leary said that Ethereum will always be one step behind Bitcoin. Recall that recently, while bitcoin is correcting, ethereum is confidently stepping up and updating one maximum after another. At the time of writing, the cryptocurrency is trading at $ 2,845, and unlike bitcoin, there is no weakening of the upward trend in the ether. Moreover, a very similar ascending channel is also present on the Ethereum movement chart. However, the second cryptocurrency after bitcoin did not leave it and showed steady growth in the last week.

Moreover, the ether is traded much more evenly, and each of its subsequent highs is located approximately at the same distance from the previous one. Thus, we believe that ethereum has a better chance of continuing to grow than bitcoin. Recall that the bitcoin dominance index has been falling recently and is already less than 50%. However, Kevin O'Leary believes that "Bitcoin will always be gold, and Ethereum will always be silver." The TV star believes that the world's second-largest cryptocurrency will be used as a "system for tracking and conducting payments." However, to achieve this goal, ethereum is now too expensive, according to O'Leary. However, as long as the ethereum continues to be inside the channel, the upward trend persists.

But experts and analysts at Fundstrat believe that the price of the second-largest cryptocurrency will continue to grow and will be at least $ 10,000 in 2021. According to the study, investors' attention is beginning to shift in favor of Ethereum. Earlier, JPMorgan experts said that Ethereum is becoming more attractive than bitcoin, as the first is more perceived as a means of exchange and payment, and the second – only as a means of saving and investment. We support this view, as the price of bitcoin is already too high. Perhaps this is not a hindrance for large investors and institutions, but small and private traders are unlikely to want to invest several thousand dollars in 0.02 "cue ball." Thus, ethereum attracts investors with a more human value, which provokes a strong growth of the cryptocurrency and a movement in "non-human value."