Ethereum price, according to a forecast, published by analysts at investment bank Goldman Sachs (NYSE:GS), could double to $8000.
Ethereum is now the second most popular digital currency
After falling below $100 in March 2020, Ethereum cryptocurrency (ETH) is now the second most popular digital currency after bitcoin, boosting its bullish momentum. Given its continued demand and online improvements, the cryptocurrency is currently at an all-time high in the $4550 range.
The reason for this optimism about the ethereum was voiced by Goldman Sachs’ head of global markets Bernhard Rzymelka, who said that the reason behind the rise of the ethereum to the $8000 mark could be that crypto-assets have started to give their answer to inflation since 2019. So if the correlation of cryptocurrencies with global inflation rates continues, such a value could be considered a reasonable target for the ether.
In addition, experts foresee the beginning of contraction in the market, which may result in depletion or breakout, and in case of such a breakout, a new rally will be triggered. Another reason for the bullish sentiment is that the long-term relative strength indicator (RSI) has not yet reached the overbought zone of previous peaks.
If the bank’s forecast is correct, by the end of the year, ethereum will rise in price by 80% from current levels.
Global investment bank Goldman Sachs began playing an active role in the crypto industry when it created its cryptocurrency trading team in the spring. It then began offering bitcoin derivatives trading services and plans to soon offer clients an option such as trading futures and options on Ethereum.
Ethereum is one of the most important assets of the cryptocurrency industry today and is still in high demand as a local token of a network that includes many other cryptoprojects.
Another “plus in the piggy bank” of Ethereum is the process of transition from Proof-of-Work algorithm to Proof-of-Stake algorithm, and the successful update of Altair last week, which will facilitate such transition, was positively perceived by the market, thanks to which ETH/USD rose from the low of $4000 to the current price of $4550.
As Goldman Sachs analysts point out, if all updates are implemented successfully and the currency’s correlation with inflation continues, ethereum’s growth will also continue.