Cryptocurrency analyst and trader Michaël van de Poppe is plotting out new price targets for Ethereum (ETH) after the leading smart contract platform experienced major growth during 2021.
In a year-end strategy session, Van de Poppe tells his 158,000 YouTube subscribers that Ethereum has not only held up well against the number-one crypto Bitcoin (BTC) but might very well become the focus of the next major crypto cycle.
The crypto strategist thinks widespread market adoption means Ethereum’s market cap could overtake that of Bitcoin, an event known as “the flippening.”
“We might be looking at a flippening of Bitcoin because it’s not only about Bitcoin anymore, it’s about the entire ecosystem.
One of the things that has changed is Ethereum… is being used in decentralized applications, so DEXs [decentralized exchanges] are using Ethereum mostly to trade their assets, which we’re using with Uniswap and SushiSwap.
The actual adoption of the Ethereum ecosystem has been growing relatively fast.
We also know from the NFT [non-fungible token] space that if you want to mint your NFTs you use Ethereum.”
Van de Poppe notes Ethereum’s overall growth and demand despite the network’s high gas fees.
Most importantly, ETH has proven more resilient than Bitcoin during the recent market correction dating back to November.
“Ethereum has been showing way more strength than Bitcoin in the recent correction, which means that the strength in Ethereum is higher than in Bitcoin.
Meaning that potentially this cycle is not anymore about Bitcoin.
It is about layer-1s and Ethereum that are producing the first layer fundamentally for the entire ecosystem, because you need platforms and layer-1s to actually succeed in this entire market space.”
Moving on to his 2022 price predictions, the analyst thinks Ethereum could be on the cusp of explosive growth that mirrors Bitcoin’s action back in 2017. He says ETH could even top $20,000.
“We could be using Fibonacci extensions to derive the next target points, in which we can be saying, ‘Based on the previous low of the cycle, previous high, and we’re reaching somewhere around the 3.618.’
In that case, we could also say, ‘Previous high, previous low,’ we can start targeting ourselves numbers where Ethereum might be topping out, which as a matter of fact target numbers around $12,600, $17,300, and potentially even $22,000.”
Van de Poppe concludes his upside price prediction by saying that ETH must hold a key support level.
“The crucial part here is that Ethereum has to hold a green block. If that happens, the trend continues and we can continue running the entire cycle.”
The price of Ethereum is currently down 8.94% to $3,811. ETH began 2021 at $730, hit a mid-year peak in May of $4,182 before falling to a summer low of $1,795 in July. The token has since seen choppy upward price action but remains 422% higher for the year.
In comparison, Bitcoin grew 63.75% during 2021. BTC went from a starting point of $29,352, lurched to an April peak at $63,576 before crashing to a summer low of $29,971 in July.
The leading crypto fought its way to another new all-time high above $69,000 in November but has since tumbled to below $47,000 amid choppy price action. Currently, it’s down 8.74% to 48,065.
Van de Poppe concludes his Ethereum discussion by pointing out what recent project upgrades plus the upcoming rollout of Ethereum 2.0 could mean moving forward.
“Ethereum is the one to watch.
Potentially we are seeing an Ethereum cycle instead of a Bitcoin cycle.”
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