Cameron Winklevoss, co-founder of the U.S. Gemini crypto exchange and billionaire Bitcoin investor, believes Ethereum is the most undervalued cryptocurrency.
Winklevoss pointed out that Ethereum is 50% away from its all-time high of around $ 1,400. By comparison, BTC is already up almost 50% from its previous record high. Winklevoss:
“Ether $ ETH is 50% away from its all-time high. It is now easily the world’s most undervalued cryptocurrency. “
Ethereum outlook remains bullish
There are several key reasons to be optimistic about Ethereum in the medium to long term.
First, the number of whales accumulating Ethereum has increased, according to Santiment.
According to analysts at Santiment, the number of whales holding Ethereum has increased in the past two months. Santiment :
“After $ ETH exceeded $ 750 for the first time in 31 months, we found that there are 39 more #ethereum addresses holding $ 10,000+ ETH than there were 2 months ago. Meanwhile, the number of addresses holding $ 1-10,000 ETH has shrunk in that time. “
This trend shows that trust is growing among long-term owners and wealthy investors.
Second, Eth2 has started, an upgrade that is intended to significantly scale Ethereum’s blockchain network (buy now? Here for instructions) over time. This could allow decentralized finance (DeFi) to grow exponentially in the years to come.
The total value tied up in DeFi has passed the $ 14 billion mark after peaking at $ 16 billion. If Ethereum usage becomes cheaper through Eth2, DeFi could grow much faster.
Due to the strong fundamentals of Ethereum and the increasing accumulation of ETH by whales, investors are generally positive about ETH.
Gemini CEO Tyler Winklevoss says he has owned a large inventory of Ethereum for many years. Winklevoss:
“We’ve had a big $ ETH bag for many years. @Gemini was the first exchange in the United States to list Ether in 2016 (@NYDFS approves no less). Happy New Year!“
What’s next for ETH?
In 2021, analysts expect a rally for Ethereum, largely as the listing of Ether futures on the CME draws closer.
The CME, which has become the largest Bitcoin futures exchange by public interest, will list Ethereum in February.
The convergence of the CME listing, whale accumulation and the generally positive sentiment surrounding Ethereum as a store of value could drive the price of ETH up.
A pseudonymous investor known as Aftab writes about this:
“The long-term value of $ ETH as gas is: 1) creates a lasting, utility-driven demand (not just memes) 2) being needed by all users increases general ubiquity and desirability 3) destroys the combustion mechanism (under EIP-1559) the offer All of this strengthens the role of ETH as SoV. “
Technically, Ethereum faces a strong resistance level at $ 840. But above that there is little resistance up to $ 1,000 – and finally, shortly thereafter, it hits a record high of $ 1,400. The key in the short term is to maintain current momentum and avoid falling below $ 700.