(ORDO NEWS) — Analysts at investment bank Goldman Sachs have released their year -end price forecast for Ethereum, suggesting that its current price could double to $ 8,000.
After dropping below $ 100 in March 2020, Ethereum (ETH) was today ranked second among the most popular digital currencies after Bitcoin, increasing its bullish momentum. Given the constant demand for it and improvements in the network, the cryptocurrency is currently at an all-time high in the $ 4550 range.
The reason for such optimism regarding ethereum was voiced by the head of the Goldman Sachs global market department, Bernhard Rjimelka, who said that the rise of ethereum to $ 8,000 could be due to the fact that from 2019 crypto assets began to give their own response to inflation. So if the correlation of cryptocurrencies with global inflation rates persists, such a value can be considered a perfectly reasonable target for ether.
In addition, experts predict the beginning of a narrowing in the market, as a result of which an exhaustion or breakout may occur, and in case of such a breakout, a new rally will be triggered. Another reason for the bullish sentiment is that the long-term relative strength indicator (RSI) has not yet reached the overbought zone of its previous peaks.
If the bank’s forecast is correct, then by the end of the year Ethereum will rise in price by 80% compared to current levels.
Global investment bank Goldman Sachs began playing an active role in the crypto industry when it created its cryptocurrency trading team in the spring. Then he began offering services for trading derivatives on bitcoins and plans to offer clients such an option as trading in futures and options on ethereum in the near future.
Ethereum is one of the most important assets of the cryptocurrency industry today and is still in high demand as a local token of the network, which includes many other crypto projects.
Another plus for Ethereum is the transition from Proof-of-Work to Proof-of-Stake, and last week’s successful Altair update that will facilitate this transition was positively received by the market, thanks to which ETH / USD rose from a low of $ 4000 to the current price of $ 4550.
As Goldman Sachs analysts emphasize, if all updates are implemented successfully and the correlation of the currency with inflation continues, the growth of Ethereum will also continue.
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