Ethereum surged on Thursday after the long-awaited release of a software upgrade designed to assist the cryptocurrency in transitioning to a more environmentally friendly blockchain network - a development that, along with surging mainstream adoptions, has helped Etherum - the world's second-largest cryptocurrency far outperform Bitcoin over the last two years.
The market would strive higher, hoping that Ether bulls would maintain the recently achieved price level and continue to drive the second-largest cryptocurrency asset higher.
However, the new milestone would be fleeting, as Ether would only be able to sustain that price for another five days. Prices dropped below $4,000, all the way to $2,170 and even $1,952.
The negative trend that precedes the genuinely bearish activism that knocked down many other cryptocurrencies struck Ethereum bulls, but they managed to climb over $2,000 and make it their base price for the most of June and July.
However, this price underperformance may soon be a thing of the past, as Bloomberg experts now claim that Ether is positioned itself to challenge the $4,000 price level.
Unlike Bitcoin, analysts do not believe Ether reached an all-time high too soon. In reality, the common consensus is that Ethereum is still significantly undervalued.
However, a shift is taking place. In a recent outlook post, Bloomberg explains this:
“Ethereum is outperforming competitors, and we believe that its increasing position as the go-to platform for the digitization of banking and money infrastructure will keep its price rising.”
Bloomberg's chart shows Ethereum establishing a foundation at $2,000 in the same way that Bitcoin did at the $30,000 price level.
This may cause Ethereum to soon reach $4,000.
This time, with market interest increasing in the aftermath of the EIP-1559 deployment, Ether has a strong chance of sustaining $4,000 and finishing the year at a significantly higher price.
As Bloomberg strategists put it:
“We believe the odds favor a return of price appreciation and a climb in Ethereum to $4,000.”
According to Bloomberg, everything might move higher from here for the world's second most valuable digital currency, which has been outperforming Bitcoin for the previous two years.
“...we anticipate more of the same in the aftermath of the B-Word conference. Ethereum has the upper hand as the bulls consolidate.” Bloomberg comes to a close.