Ethereum will show excellent returns in 2021

If you pay close attention to Bitcoin (BTC), then you are probably tracking Ethereum (ETH), which is also making great progress. Today Ethereum (ETH) surpassed the critical level of $ 700 and at the time of publication of the article was trading at $ 72 on the BitXmi crypto exchange with a market capitalization of $ 81.5 billion.

2021 could be the year for Ethereum investors as institutional purchases of ETH grow. Moreover, given that ETH is trading at 50% off its all-time high, the cryptocurrency has a lot of potentials.

At its current price of $710, investors can still buy $ETH for more than 50% off its previous ATH.

Considering (1) how correlated BTC and ETH are historically, and (2) how BTC has already surpassed its ATH, it’s arguably the best risk-return right now in crypto.

— Spencer Noon (@spencernoon) December 28, 2020

If we look at the charts, Ethereum continues to rally to highs and highs. With new highs, ETH is receiving decisive support with every up move.

One of the traders called this pattern “Stairway to Heaven”.

$ETH (USD)

Endless series of higher highs and higher lows, with the most recent low confirmed by a fresh higher high.

I deem this pattern the "Stairway To Heaven." pic.twitter.com/sZM2m9ts0w

— The Wolf Of All Streets (@scottmelker) December 27, 2020

Also, after the massive bullish rise in BTC over the past three days, the ETH / BTC pair has entered oversold territory. It is currently at decisive resistance and indicates an impending bullish divergence.

$ETH / $BTC

Beautiful oversold bullish divergence and pop. Now it's time to pay attention – the pair is at a key resistance. pic.twitter.com/L0qswHz2Lv

— The Wolf Of All Streets (@scottmelker) December 27, 2020

One of the main pillars of Ethereum is that some of the largest Decentralized Finance (DeFi) applications are hosted on the blockchain. The blockchain currently controls over 70% of DeFi activity.

Cryptocurrency expert Alex Kruger believes that eventually, organizations will turn their attention to DeFi:

“Institutional investors will definitely turn their eyes to DeFi. But not now, although it is a matter of time. Then prices will rise so much that you will not believe it. However, don’t expect this to happen in 2021. This requires normative clarity.”

Read actual crypto news and forecasts every day on https://news.bitxmi.com/

Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.