Ether traders have been so optimistic that the cryptocurrency has not lost strength despite a 9.5% correction. Bernard Rzymelka, from Goldman, believes that its value could rise since inflation expectations have become higher.
The price of Bitcoin (BTC) usually leads the way for leading altcoins, whose prices also increase. The value of Ether (ETH) recently reached a new all-time high just two weeks after the first crypto asset did.
Analysts predict that the price of the second-largest crypto asset in the market could reach and even exceed USD 5,000. Everything seems to indicate the value of Ether will succeed in doing it.
The Price of Ether Will Continue Rising
Experts usually base their forecasts on the price of Ether on the staking of ETH 2.0. They also take into account the reduction in the supply available as a consequence of EIP-1559.
For that reason, many users of the cryptocurrency ecosystem say the value of Ether, which is close to USD 5,000 thousand, is programmed. Some others even say that it will surely reach USD 20,000 in the long term.
Traders have been so optimistic about Ether that it has not lost strength despite the 9.5% correction that it recently suffered. On October 27th, the value of the cryptocurrency dropped from USD 4,300 to USD 3,900.
In late October, 50 specialists in financial technology stated that the price of the cryptocurrency could reach USD 5,114 thousand by the end of 2021. They also predicted that ETH could be worth USD 50,788 thousand by the end of 2030
Ether is currently trading at around USD 4,520 thousand and has accumulated a 14.6% profit in the past week. Its price recently hit a new all-time high of USD 4,674.90, but it needs to rise by 3.37% to exceed that record price.
Some analysts believe that it could even reach USD 5,000 thousand if it maintains its current trend. As Ether has entered the ascending channel, its price could be heading to the support level this month.
Goldman Sachs Predicts a Higher Price for Ether
Besides the cryptocurrency community, some companies are expecting a significant increase in the value of Ether. For example, Goldman Sachs has said that the growing popularity of the crypto asset will allow it to outperform Bitcoin.
Goldman Sachs recently stated that the price of Ether would have a chance to increase by up to 80%. Therefore, it would rise to USD 8,000 thousand in the following two months.
Bernhard Rzymelka, director and global markets manager at Goldman, compared the Bloomberg Galaxy Crypto index to an inflation expectation market measure. His study revealed that there is a strong correlation between both indicators.
The executive found that Ether has followed the steps of inflationary markets very closely. Given that inflation expectations have risen, Ethereum’s cryptocurrency could also be on its way to doing so.
The prediction by Goldman Sachs ranks the value of Ether well above forecasts by other analysts. It is only a matter of time before the price of the second-largest cryptocurrency hits a new all-time high.
By Alexander Salazar
