Cryptocurrency News

Ethereum at a Discount, Why ETH Looks Like BTC in 2017


Ethereum has seen some improvement over the past few days, The crypto market experienced one of its worst months since March 2020. At the time of writing, the second cryptocurrency by market cap trades at $2,823.

ETH moves sideways on the daily chart. Source: ETHUSD Tradingview

recently report good Published by Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, claims that ETH is on a “high-beta bull path”. McGlone believes ETH may take a similar path to bitcoin in 2017 when this cryptocurrency ranged from around $1,000 to $20,000.

Following the recent crash, the analyst claims that the market’s speculative excesses have subsided and the fundamentals are still strong and bullish to continue the rally. Therefore, ETH may be on track to rebound bitcoin’s market cap and take the number one spot in the crypto market. McGlone wrote:

(…) The trend that appears to be permanent is Ethereum’s market share versus Bitcoin. Both have a bullish basis, but No. 2’s foundation and use case is a strong complement to No. 1’s more macro store-of-value characteristics.

“Flipping”, as some members of the crypto community have called it, has started to happen in certain metrics. Bloomberg Intelligence data shows that ETH has double the 10-day average trading volume.

It’s about 80%. represents BitcoinSince the beginning of 2021 and indicates a trend towards the number one position for ETH. McGlone wrote:

Ethereum faces competition from other crypto-asset and smart-contract platforms, but No. 2 crypto has won the adoption race for the digitization of money and finance.

Ethereum ETH ETHUSD
Source: Bloomberg Intelligence

Ethereum, the Number One Platform for the “Crypto Gold Rush”

There are two main tailwinds for the rise of BTC and ETH: Global macro-economic conditions, accelerated inflation and low interest ratesThere is a decreasing supply compared to an increase in demand for cryptocurrencies.

According to McGlone, Ethereum’s network has an added advantage. The platform hosts over 10,000 tokens and has cemented its position as the primary destination for the growing DeFi ecosystem. This has given ETH a position of advantage in the crypto space. McGlone said:

Ethereum uniquely positioned itself as the top provider of virtual shovels among the crypto gold rush.

Ethereum ETH ETHUSD
Source: Bloomberg Intelligence

$2,000 could become a major support ETH price If the decline continues in the coming days. If the price manages to return to these levels, the previous high near $4,000 will act as resistance. As the cryptocurrency enters a consolidation phase, these ranges may act as a “bull cage” for the time being. McGlone wrote:

ETH is back on an optimistic trajectory to follow Bitcoin’s 2017 price trajectory. Similar to Ethereum earlier this year, the benchmark crypto started around $1,000 in 2017 and peaked just below $20,000. Ethereum is likely to remain in the range of around $2,000-$4,000 in May until October and maintain its flight plan similar to that of Bitcoin in 2017.

ETH ETHUSD
Source: Bloomberg Intelligence



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