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A Very Ambitious Price Target Has Been Set for ETH in 2021

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Published on:
January 21, 2021

Fundstrat Global Advisors has set a five-figure price target for ETH because its 'fundamentals are incredibly strong.'

A Very Ambitious Price Target Has Been Set for ETH in 2021

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Ether could rally by 650% and hit $10,500 this year, according to Fundstrat Global Advisors.

 

In a note to investors obtained by Yahoo! Finance, analysts said their ambitious price target was a reflection of how the Ethereum blockchain is central to smart contracts, decentralized finance and stablecoins. The note reportedly said:

 

“We continue to believe Ethereum fundamentals are incredibly strong and think [ETH] represents the best risk/reward investment play in crypto.”

 

Aiming to offer a justification for this unprecedented five-figure price point, Fundstrat pointed to how network fees on the Ethereum blockchain continue to demand — citing this as evidence of the network’s popularity.

 

Fundstrat’s figures show that Etheruem fees reached $600 million in 2020, but over the first 17 days of 2021 alone, they were already at $180 million. When extrapolated to cover the whole of this year, analysts estimate that fees could reach a grand total of $3.9 billion.

 

ETH has managed to enjoy such levels of annual growth before. After bottoming out at lows of $97 in mid-March 2020, the world’s second-largest cryptocurrency surged by 657% in the eight-and-a-half months to Dec. 31, ending the year at $735.

 

According to CoinMarketCap data, ETH came within 58 cents of reaching a new all-time high beyond $1,432.88 on Tuesday. On some exchanges, such as Gemini, the crypto was trading at $1,440. Prices have cooled substantially since then, settling in at $1,235 at the time of writing on Thursday afternoon.

 

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