Ethereum has slipped lower over the past 10 days as legacy markets have also dropped from their highs. Even after a 15% bounce to $360, the leading cryptocurrency is currently over 25 percent from the year-to-date highs of $490.
Some commentators have asserted that this clear rejection is a sign that Ethereum will return to a bear trend.
A majority of investors, though, remain optimistic about ETH’s prospects.
A poll conducted by a top analyst and venture capitalist in the crypto space, for instance, suggests that a majority of investors think Ethereum will finish the year 2020 above $500.
Where will Ethereum end 2020 at?
Chris Burniske — partner at Placeholder Capital and a former crypto-asset analyst at ARK Invest — recently posed the following question to his followers to conduct a poll: Where is ETH by the end of 2020?
A mere 9.5 percent of the 4,000 respondents chose the first option: under $250.
The rest chose the other three options, $250-$500, $500-$750, and $750-$1,000 and beyond. A majority, over 63 percent, indicated that they expect Ethereum to reclaim the key $500 resistance by the end of the year.
many of which are predicated on the recent adoption of DeFi:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs.”
Burniske also thinks that Bitcoin will hit a price of $50,000, which translates to a market capitalization in excess of $1 trillion.
Somewhat dependent on Bitcoin’s price action
ETH ending the year above $500 and beyond is dependent on Bitcoin’s price action as the leading cryptocurrency dictates the directionality of the cryptocurrency market.
Prominent analysts, fortunately for crypto investors, remain optimistic.
Mike McGlone of Bloomberg Intelligence recently wrote in regards to the chart below:
“Return to Decisive Support Zone – Some overdue mean reversion in the stock market is pressuring most assets, but we expect gold and Bitcoin to come out ahead in most scenarios. Declining equity prices encourage more monetary and fiscal stimulus…”
#Gold at $1,900, #Bitcoin $10,000 Return to Decisive Support Zone – Some overdue mean reversion in the stock market is pressuring most assets, but we expect gold and Bitcoin to come out ahead in most scenarios. Declining equity prices encourage more monetary and fiscal stimulus.. pic.twitter.com/8dkJ2vdkdg