The name of a crypto coin, Ether, otherwise known as Ethereum (ETH), has been making the rounds in the market recently. at a time when Bitcoin And with several crypto trading agencies around the world facing what is inevitably a global crackdown, it looks like there may be a new contender for the top spot. On Tuesday, Goldman Sachs shared its predictions and outlook for the crypto coin going forward. In the note issued, Goldman Sachs argued that real use cases for the ether currency will soon cryptocurrency The leading digital store of value.
This means that the coin may actually overtake the bitcoin currency in the near future according to Goldman Sachs. Bitcoin, on the other hand, carries a strong brand value that it has developed over the years. While this may give bitcoin a definite advantage, the actual use cases created by ether are lacking, according to a report from Business Insider. “Currently looks like the cryptocurrency with the highest real use potential as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications,” Goldman Sachs notes. Ethereum’s current price stands at $2,150.88 as of information from Coinmarketcap at the time of this writing.
Despite this increasing competition among digital currencies, Goldman Sachs is of the view that gold will still remain the champion for investors. The company said that no cryptocurrency will surpass gold in terms of value and stability because the nature of the cryptocurrency is volatile at best according to analysts at Goldman Sachs.
The investment bank said, “Gold is competing with crypto to the same extent as it is competing with other riskier assets such as equities and cyclical commodities. We consider gold as a defensive inflation hedge and crypto as a hedge. See it as a risk-inflation hedge.” Goldman Sachs further said that it is the nature of this competition that is creating such volatility, making it an unsafe investment for most investors.
On the subject of this rise in Ether, the Zebpay Trade Desk said, “Analysts believe that Ethereum will be bullish against Bitcoin over the next few weeks with EIP-1559 on technical progress as well as optimistic fundamentals.” A shortage of Ether on exchanges globally would limit its circulation and result in shortages that could drive up prices.”
Zebpay also said, “ETH has taken support around $1,720 several times in the past. This time too it did the same and started an upward move forming a ‘Higher Top Higher Bottom’ pattern. It is up almost 39% from the lows and made a weekly high of $2,386.5. ETH faced resistance at these levels and saw some profit booking. Currently, the asset is consolidating around $2,350 to $2,150 and if If the price sustains the support level then we can expect another rally to the next resistance level which is $2,650.
The bitcoin price has seen a rally over the past few weeks and has since dropped below $35,000. Recently the coin slid even higher and at the time of this article, the price was $32,547 as per information from Coinmarketcap.
“BTC has been trading above the $35,000 mark over the past few days. Psychological resistance levels keep sellers on their toes. This squeeze between buyers and sellers is causing a consolidation in bitcoin’s price movements. Volume remains stable. On the four-hour time frame price chart for BTC, the movement is at the peak of a breakout from a triangle pattern. Such breakout patterns indicate near-term volatile movements on either side of Bitcoin. Enthusiasts will be closely monitoring this pattern for short-term trades,” said Edul Patel, CEO and Co-Founder, Mudrex- a global crypto trading platform.
He said, “Among altcoins, Polkadot and Solana saw another spectacular rally. They both shot up over 9%. Binance Coin gained over 6.5%. Shows high trading volume on these altcoins That attention is slowly shifting from bitcoin to altcoins. The largest altcoin, Ether, is still hovering around the $2400 mark.”
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