The second-largest currency, Ethereum shot a record new high above $3,500 on Tuesday. The ETH token has outrun Bitcoin in 2021, due to the keen interest of investors on the network. According to analysts, Ether can potentially hit $5,200 as per its historic trends.
Ethereum New High Records $3,500, While Bitcoin is Struggling
Popular as the digital oil of the crypto industry, Ether eclipsed over $3,500. However, the digital gold of the market is struggling to maintain its shine in the space.
According to analysts at the Kraken exchange;
“There was a lot of momentum behind ether and that technical chart analysis suggested the cryptocurrency could rise to around $5,200 before facing another serious level of resistance.”
The rise of 9.8% took place as of 10.20 a.m. ($3,456.10) ET time, according to Coinmarketcap. The token also reached an all-time high of $3,519.60 after rising more than 37% over the past week.
Applications of Ether Network are Major Reason Behind The Bull
Listening to investors, the chief reason behind increasing interest is the applications of the Ethereum network such as Non-Fungible Tokens, or NFTs can be fabricated on it. The decentralized network or DeFi uses blockchain technology to eliminate the need for central parties, such as banks or other central authorities in between.
According to the analyst data, Ether’s year-to-date gain stood at around 363% on Tuesday, compared to bitcoin’s 87% rise.
Nigel Green, Chief Executive of financial consultancy deVere Group said;
“Compared to its bigger rival, Ethereum is more scalable, offers more uses and solutions, such as smart contracts which are already used across many sectors, and is backed with superior blockchain technology.”
According to Kraken’s analysts, the technical analysis suggested that:
“Ethereum will rise in the medium term before running into more resistance. ETH’s next big test of resistance is currently at $5,240, while support resides around $2,811, ETH has plenty of room to run higher and has yet to enter into a parabolic uptrend akin to 2017 and earlier this year.”