Ethereum is by far the most undervalued cryptocurrency
Cameron Winklevoss, co-founder of US crypto exchange Gemini and billionaire bitcoin investor, believes Ethereum is the most undervalued cryptocurrency.
Winklevoss pointed out that Ethereum is 50% away from its all-time high at around $1,400. In 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 most undervalued cryptocurrency in the world.“
Ethereum outlook remains optimistic
There are several important reasons to be optimistic about Ethereum in the medium to long term.
First, the number by Bitcoin System of whales accumulating Ethereum has increased, according to Santiment.
According to Santiment analysts, the number of whales holding Ethereum has increased over the past two months. Santiment:
„After $ETH surpassed $750 for the first time in 31 months, we found that there are 39 more #Ethereum addresses holding $10,000+ $ETH than 2 months ago. Meanwhile, the number of addresses holding $1-10,000 $ETH has shrunk in that time.“
This trend shows that confidence is increasing among long-term holders and high net worth investors.
Secondly, Eth2 has launched, an upgrade that aims to significantly scale Ethereum’s blockchain network (Buy Now? Go here for instructions) over time. This could allow decentralised finance (DeFi) to grow exponentially in the coming years.
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.
Given Ethereum’s strong fundamentals and the increasing accumulation of ETH by whales, investors are generally positive about ETH.
Gemini CEO Tyler Winklevoss says he has owned a large holding of Ethereum for many years. Winklevoss:
„We have had a large pocket $ETH for many years. @Gemini was the first exchange in the United States to list Ether in 2016 (@NYDFS approved no less). Happy New Year!“
What’s next for ETH?
In 2021, analysts expect Ethereum to rally, especially as the listing of Ether futures on the CME draws closer.
The CME, which has become the largest bitcoin futures exchange after open interest, will list Ethereum in February.
The confluence of the CME listing, the whale accumulation and the generally positive sentiment around Ethereum as a store of value could drive up the price of ETH.
A pseudonymous investor known as Aftab writes on this:
„The long-term value of $ETH as a gas is: 1) creates a durable, utility-based demand (not just memes) 2) being needed by all users increases overall ubiquity and desirability 3) the combustion mechanism (under EIP-1559) destroys supply All of this strengthens ETH’s role as a SoV.“
Technically, Ethereum faces a strong resistance level at $840. But above that, there is little resistance until $1,000 – and finally, shortly after that, its record high is above $1,400. The key in the short term is to maintain the current momentum, and that a drop below $700 is avoided.