After their big rise, cryptocurrencies fell on Friday. However, the second largest cryptocurrency, Ether showed some signs of recovery amid network upgrades.
While Ether showed a drop, as did Bitcoin, falling 10% to about $ 2.150 early in the afternoon in Hong Kong, reached a record $ 2.644 during Thursday. This trend is similar to Bitcoin, which fell from its own record on April 14. An upcoming upgrade is expected to reduce the supply of Ether, which could help increase its price.
«Ethereum comes into focus for a while"He said Paolo Ardoino, its chief technology officer Bitfinex, in a note on Thursday. «It is worth noting its leading role in Decentralized Financing (DeFi) and even the plethora of NFT markets.»
Ethereum blockchain is the most commonly used in the world and has attracted attention in recent months, with activity in areas such as DeFi and non fungible cryptocurrencies. Over the past year, a group of investors has emerged that have Ether as their first choice or in some cases as their only choice, said Grayscale Investments LLC in December. While Bitcoin has grown about 70% this year, Ether has tripled.
Cryptocurrency analysts are also forecasting more profits. THE Konstantin Anissimov, executive director on the cryptocurrency exchange platform CEX.IO, said the $ 3.000 level for Ether is "more achievable than ever." THE Nick Spanos, co-founder of the decentralized network Zap.org, sees that it can reach this point by the end of the month. And Arthur Hayes, co-founder of 100x who is currently facing legal issues with USA, but is widely known in the cryptocurrency community, last week posted a comment predicting big increases in the price of Ether in the coming years.
Of course, this does not mean that everything goes smoothly. Cryptocurrencies are volatile and there are concerns that they could lose value at any time. Furthermore, the Cornerstone Macro LLC, said that Ether may have more disadvantages in market downturns than Bitcoin. However, the technical analyst Rich Ross of Evercore ISI is a "strong buyer" of Ether. «He remains a little better than the King of cryptocurrencies", He said in a note on Thursday, while targeting the price of $ 3.500.