Analysts predict parabolic Ethereum price rally as institutional capital flows in
- Co-founder of Ethereum, Vitalik Buterin recently argued that Ethereum is more decentralized than its competitors.
- While Solana beats Ethereum in TPS, its network is highly centralized, making ETH the choice for projects seeking a decentralized network.
- Analyst Benjamin Cowen has predicted a breakout in Ethereum price after the altcoin ended long sideways action.
- There is a spike in institutional capital inflow in Ethereum; analysts predict a parabolic rally in ETH.
Vitalik Buterin doesn't expect Ethereum per-slot time, the time it takes to add a block to the chain, to reduce in the future and argues the altcoin is more decentralized than its competitors. Ethereum price could break out into a parabolic rally if the uptrend is preserved.
Analyst Benjamin Cowen predicts parabolic Ethereum price rally
In a recent Reddit thread, Vitalik Buterin, co-founder of Ethereum, argues that making block time faster could threaten the decentralization of the network. Solana, a key competitor with a highly centralized network, has a large economic advantage over the largest altcoin, for example.
A quick post explaining the current choice of block times (both pre- and post-merge) and the tradeoff between speed and decentralization/safety.https://t.co/jYlt9ODzzE pic.twitter.com/EuP9u7NCgX
— vitalik.eth (@VitalikButerin) February 6, 2022
Analyst Benjamin Cowen evaluated the Ethereum price trend and predicted an explosive rally in the altcoin. News of the next hardfork, reduced transaction fees, and higher institutional investment in Ethereum has fueled investors' bullish outlook.
The analyst notes that Ethereum price broke past long sideways trading and is ready to target $7000-$8000. Cowen said:
If we do come out of this downtrend, let's say by the summer, and we come back up to the prior all-time highs, and then Ethereum breaks out, and we start trending higher, maybe we get up to the $7,000-$8,000 level and then we have to go sideways there for half a year.
Recovering from the bloodbath over the past week, Ethereum price has crossed $3,000 and posted 10% gains over the past week. @kingthies, a cryptocurrency analyst and trader, believes that Ethereum price could hit $3,600 if the trajectory of the current uptrend continues.
$ETH at $3225 has resistance ahead just below $3300. Climbing beyond that expect $3.6k & $3.9k
— Crypto Thies (@kingthies) February 8, 2022
Supports laddering down from $3.1k, $2.9k pic.twitter.com/rxUPF6ClKs
FXStreet analysts have predicted that Ethereum price could liquidate bulls if it falls below $3,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
