Bitcoin is probably the most famous cryptocurrency in the world today, but there are quite a few others which are as effective, and could also be better investments given the price of Bitcoin. Bitcoin rose to over $40,000 at one point this January, and is currently trading at around $35,000, having seen a stunning rise in price from the lows of March 2020, when it was around $8,000. Of course, Bitcoin investors will have been delighted with this rally, and it has probably made multi-millionaires of early investors, but it is also true that Bitcoin is fast growing out of reach of common and new investors. There are also doubts around the possibility of further rallies, even if many experts believe that the token could reach $100,000 in a couple of years. This, combined with the volatility in the price of Bitcoin, has meant that many investors have been looking for different cryptocurrencies to back. Ethereum is the best bet in that regard, and it has recently been seeing a lot of decent price action in the markets.
Of course, it is also important to note that most market experts firmly believe that Ethereum is extremely important to the crypto ecosystem, and could soon even surpass Bitcoin as the largest crypto. This is largely down to the underlying Ethereum blockchain, which has a slew of applications beyond just record-keeping and data management, and is already being used by a number of companies to build new projects and products. For example, we are seeing how online casinos have begun adopting cryptocurrencies as a way to draw more users. These casino websites and apps are largely using Ethereum to enable this, and thus casino Eth sites and games have become extremely popular. This is just one example, there are many other sectors where the ETH has already proved to be a good option for innovation, and thus we may even see Ethereum become the most important crypto in the near future, with its ability to provide smart contracts proving to be invaluable ahead of Bitcoin’s use as a store of value.
The price of ETH may have dropped by around 27% to $900 earlier this month, but it has remained steady since then, even if it has struggled to break past $1,270. Given the technical conditions, if there is enough buying pressure, the price could break past this resistance level and rise by nearly 30% to around $1,650 soon. However, the cryptocurrency markets are quite leveraged, and thus it may be that the price dips further to flush out these traders before rising. Thus, there is also the likelihood that the price of ETH could drop to $1,160 in the coming weeks. If this does happen, we could see a lot of sustained buying interest which could act as a support level and prevent the price from dropping further. Research has shown that nearly 500,000 addresses have purchased over 8.60 million ETH at an average of $1,160 previously, which suggest that there could be similar interest if this price is hit. However, if that does not materialise, the price could drop even further, with $1,000 becoming the next important potential support level. Again, past data shows that nearly 660,000 addresses have previously bought over 3.60 million ETH at this price level. Thus, it is important that there is enough buying support for ETH in the short term to prevent the price from dropping too far, before it can begin to rally upwards again.