Tips for traders, 19 January 2021
In the past week, Ethereum has outperformed Bitcoin. This is probably due to the fact that people perceive Bitcoin to be overvalued at the moment, which has caused pressure on Bitcoin and pushed it lower to $30,000 before it climbed back to $36,000.
The price of Ethereum itself hasn’t broken its all-time high from 2018, which was around $1,500. The current price is very close to this, but if we take a look at ETHBTC, we see that Ethereum has lagged behind Bitcoin at some points.
If there’s a possibility that the price is about to form some kind of ratio to Bitcoin, we can see Ethereum going up substantially maintain this. The all-time high’s ratio is 0.12. If we take half this, 0.06, and maintain the price of Bitcoin at $36,000, there is the possibly for Ethereum to reach $2,160. This of course depends on whether such a ratio is confirmed and whether sentiment holds.
In addition, the EIP-1559, which will substantially reduce transactional costs within Ethereum, could attract more money to Ethereum as people might be more keen to use the ecosystem again.