The name of a crypto coin, Ether, otherwise known as Ethereum (ETH), has recently been making the rounds in the market. In a time when Bitcoin and many crypto trading agencies the world over are facing what is essentially a global crackdown, it looks like there may be a new contender for the top spot. On Tuesday, Goldman Sachs shared its predictions and outlooks for the crypto coin going forward. In the note issued, Goldman Sachs argued that the real use cases of the Ether currency could soon make the cryptocurrency the dominant digital store of value.
This implies that the coin could actually overtake the Bitcoin currency in the near future according to Goldman Sachs. On the other hand, Bitcoin does hold a stronger brand value that it has cultivated over the years. While this might give Bitcoin a certain advantage, it lacks the real-use cases that Ether maintains according to a report by 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,” the Goldman Sachs note said. The current price of Ethereum stands at $2,150.88 at the time of this writing as per information on coinmarketcap.
Despite this increasing competition amongst the digital currencies, it is Goldman Sachs’ view that gold will still remain the champion for investors. The company stated that neither cryptocurrency would be overtaking gold in terms of value and stability as the very nature of cryptocurrencies are volatile at best according to the analysts at Goldman Sachs.
The investment bank said, “Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities. We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge.” Goldman Sachs further said that it is the very nature of this competition that is causing such volatility, making it an unsafe investment for most investors.
On the topic of this rise in Ether, ZebPay Trade Desk said, “Analysts believe that Ethereum could rise sharply against Bitcoin over the next few weeks with the technical advancements with EIP-1559, along with optimistic fundamentals. The depletion of Ether on exchanges globally will limit its circulation and result in scarcity which may drive prices up.”
Zebpay also added, “ETH had taken support around $1,720 multiple times in the past. This time too it did the same and started moving upwards forming a ‘Higher Top Higher Bottom’ pattern. The asset has surged by almost 39% from its recent lows and made the weekly high of $2,386.5. ETH faced resistance at these levels and witnessed some profit booking. Currently, the asset is consolidating around $2,350 to $2,150 and if the price sustains the support levels we can expect another rally up to the next resistance level which is at $2,650.”
Bitcoin prices took a hit on in the last few weeks and the price has since dropped below the $35,000 mark in its value. Recently the coin slipped even further and at the time of this article, the price stands at $32,547 as per information on coinmarketcap.
“BTC is toying with the $35,000 mark for the past couple of days. The psychological resistance level keeps the sellers on their toes. This squeeze between the buyers and the sellers is causing consolidation in Bitcoin’s price movements. Traded volume has remained steady. On a four-hour timeframe price chart for BTC, the movement is at the cusp of a breakout from a triangle pattern. Such breakout patterns indicate near-term volatile movements on either side. Bitcoin enthusiasts will be closely tracking this pattern for short-term trades,” said Edul Patel, CEO and Co-founder, Mudrex- A Global Crypto Trading Platform.
He added, “Among the Altcoins, Polkadot and Solana witnessed another wonderful rally. They both shot up more than 9%. Binance Coin gained more than 6.5%. The high traded volumes on these altcoins suggest that the attention is slowly shifting away from Bitcoin to the altcoins. The largest altcoin, Ether, is still hovering around the $2400 mark.”