Ethereum has showed impressive recovery, bouncing back more than 20% in the past five days, now trading around $1,700. This revival has generated bullish sentiment among the analysts, with some expecting this to trigger a major rally across the rest of the large-cap altcoins. Even with the recent Ethereum price surge, Ethereum is still well below its all-time high and could represent a good investment opportunity.
Analyst Predicts Ethereum's Potential Return to All-Time High
Analyst Alex Becker says that Ethereum has a 90% chance of rallying all the way back to its previous all-time high of $4,892. To get to that value, the cryptocurrency would have to increase in price by over 2X. This expected increase is largely due to Ethereum’s past performance and its necessity for so many aspects of the blockchain world. According to Becker’s analysis, even compared to its current price Ethereum has the potential to provide a 4x return thus presenting an even more compelling investment opportunity.
Ethereum has struggled in conjunction with the overall market, recently reaching a multi-year low at $1,386. It has since recovered and is currently trading at $1,670, up 4.2% on the day and an impressive 10% over the last week. This price recovery is an encouraging sign for Ethereum. It does still trade 65% below its all-time high, thus offering a great deal of upside potential for more substantial growth if it garners Becker’s optimistic prediction.
Potential Impact on Altcoins
Becker suggests that Ethereum's resurgence could extend to other major altcoins, potentially fueling gains for cryptocurrencies like XRP, Dogecoin, and Cardano. This bearish projection is largely founded on the historical inverse correlation between ETH’s price action and the overall altcoin market. When Ethereum does well, it typically boosts investor confidence and brings more capital into the crypto world at large.
The broader altcoin rally potential further emphasizes the growing correlation across the cryptocurrency space. Investors have their eyes set on Ethereum’s performance. They see it as a sufficient signal that the altcoin market is generally healthy and is likely to grow.
Investment Risks and Potential Upsides
And as much as Becker shares a bullish long-term outlook on Ethereum’s promising potential, he’s aware of its inherent risks. He pinpoints a worst-case scenario in which Ethereum might fall to $500, meaning he’d lose half of his investment. Despite this risk, Becker dreams of an ultra-bullish scenario wherein Ethereum could still go as high as $10,000.
This massive span of possible results really highlights just how much volatility there is in crypto investing. Investors need to think critically about their own risk tolerance and investment objectives, and do their own diligence before investing.
