Ethereum is threatening traditional finance in a manner similar to how Bitcoin is edging out Gold as a store of value
Ethereum is the go-to platform for the digitization of finance
One ETH is more accessible to investors in terms of price when compared to Bitcoin
Ethereum’s bullishness is mimicking 2017 where ETH rose in value after Bitcoin
ETH may reach $19k in 2021 if the 2017 pattern is repeated
The team at Bloomberg has released their monthly Crypto Outlook report in which they point out that ‘Ethereum is to fintech and digitization what Bitcoin is to Gold’.
According to the report, the world is shifting towards the digitization of finance and Ethereum is best placed to revolutionize the old way of doing things. Furthermore, in terms of price, investors seeking whole units of a digital asset will most likely view Ethereum in a favorable manner when compared to Bitcoin.
They explain the two phenomena as follows.
The world is rapidly going digital, and Ethereum appears as similar a threat to old-guard finance as Bitcoin is to gold…
For investors seeking whole units, the No. 2 crypto has a price advantage vs. No. 1 Bitcoin, but the bottom line for ETH is that it’s the go-to platform for crypto assets and the digitalization of finance.
Akin to Bitcoin winning the adoption race as the world’s digital-reserve asset, ETH is the foundation for non-fungible tokens (NFTs), smart contracts, decentralized finance (DeFi) and exchanges (DEXs).
Ethereum Might Hit $19k in 2021
In addition to Ethereum being at the forefront of digitizing finance, the team at Bloomberg highlighted its current bullish momentum in the crypto markets as being similar to that witnessed in 2017. Furthermore, if Ethereum’s bullish trajectory of 2017 is repeated, ETH could hit $19k in 2021 as explained below.
If on a similar price-path as Bitcoin in 2017, Ethereum may reach $19,000 in 2021; to May 4, the No. 2 crytpo at about $3,400 is more than double Bitcoin on the same day four years ago.
ETH at about 4x its 50-week moving average indicates a stretched market. The last time this level was exceeded was around Ethereum’s peak in 2018