Well Ethereum in the last decade of October 2021 updated its all-time high at $ 4370. This rise was also due to the general rise of the crypto market, primarily Bitcoin, which the jumped up above $ 67,000. However, there are a number of individual growth factors Ethereum… What will happen to this cryptocurrency next and can this altcoin ultimately push Bitcoin?

Ethereum dynamics in October 2021

Source: app.stormgain.com
Source: app.stormgain.com

New record

Against the background of the general optimism of investors, Ethereum on October 21, 2021 updated its all-time maximum at $ 4370, having risen in price almost 6 times since the beginning of this year. At the same time, its capitalization reached almost $ 500 billion. Of course, while it is still far from Bitcoin, which has already risen above $ 67,000, and its capitalization has exceeded $ 1.3 trillion.

Ethereum capitalization dynamics

Source: coinmarketcap.com
Source: coinmarketcap.com

Common causes of growth

The sharp jump in this altcoin has both general market reasons and purely individual ones. Market optimism has been boosted by the news that the US Securities and Exchange Commission (SEC) has approved the first Bitcoin ETF called Bitcoin Strategy. And on October 19, trading in this exchange-traded fund very successfully started on the New York Stock Exchange. This has become a very long-awaited moment for the entire market, because crypto companies have been trying to get SEC approval since 2013, but until recently all their attempts have remained unsuccessful.

Own factors

While Ethereum’s rise is largely due to market-wide optimism, there are reasons for its growth as well. For example, in August, the network of this altcoin underwent the London update, as a result of which a token burning mechanism appeared in the cryptocurrency blockchain, which reduced the amount of commissions for transactions carried out. This reduces the volume of Ethereum tokens in circulation, which means it contributes to price increases.

Another reason for the increased interest of investors in Ethereum was voiced by the head of the Ripple company (issues XRP tokens) Brad Garlinghouse… He believes that Ethereum is growing so actively due to the favorable attitude towards it from the American financial regulators – primarily the SEC.

Further perspectives

Despite the fact that Ethereum is now one of the most demanded altcoins with the highest market capitalization, it is, of course, far from Bitcoin. And it is unlikely that in the near future this token will be able to squeeze the main cryptocurrency. However, nevertheless, in its segment, its prospects are quite bright.

It is planned that next year Ethereum will switch to protocol 2.0, which will make the network of this cryptocurrency even more user-friendly. Due to this, thinks renowned analyst and trader Kaleo, by July 2022, Ethereum will cost $ 18,000. In turn, the CEO of Real Vision and the former head of the hedge fund Goldman Raoul Pal gives an even higher forecast. In his opinion, Ethereum will reach the $ 20,000 level.

Course forecast Ethereum from trader @CryptoKaleo

Source: twitter.com
Source: twitter.com

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