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Ethereum has hit a new ATH of $ 1,750, an economist predicts $ 20k by the end of the year


In early trading Thursday in the Asian session, the Ethereum price It reached a new high of $ 1,750, marking a 9% gain on the day. ETH is now 17% higher than its previous all-time high three years ago and could go further if the momentum continues.

It has positioned the asset firmly above its previous and 2018 high of $ 1,450 as it moves ever closer to the $ 2,000 level. Since the beginning of the year, the price of ETH has risen a whopping 130%. In comparison, Bitcoin has gained only 30% during the same period.

Ethereum Price
ETH / USD Binance. Chart by Tradingview

At press time, Ethereum had retreated slightly and was trading at $ 1,665 according to Binance. The momentum is likely fueled by Ethereum futures which will debut on the Chicago Mercantile Exchange on February 8.

Ethereum at $ 20,000?

As with any crypto asset reaching a new all-time high, longer-term price predictions are starting to emerge and there has been a huge one from Global Macro Investor economist and CEO Raoul Pal. Investment strategist sees big things for Ethereum with a bold $ 20,000 price prediction;

"I still hope it reaches $ 20,000 by the turn of the year."

$ 20k maybe a little on the bullish side, but the ETH price they could easily hit $ 5k when the ETH 2.0 scale is rolled out with Phase 1 of the Serenity update.

At current prices, around $ 4.9 billion in ETH has currently been locked into the Beacon Chain contract, immobile for at least a year. There are almost 3 million ETH wagered now that will not be available to investors until Phase 1.5 merges the two blockchains.

The gas crisis worsens

Scaling up has been a major thorn in the side of the world's largest smart contract network, which is crumbling under pressure right now. Ethereum transaction prices have skyrocketed to their highest levels of nearly $ 20.

Gas prices
Chart – bitinfocharts.com

Basically, this has made micro-transaction DeFi are unsustainable, as moving just under $ 1,000 in ERC-20 tokens is going to hurt. Industry Expert Anthony Sassano commented on the increase in the volume of DEX for ETH that is aggravating the demand in the network;

"Decentralized exchange volume on Ethereum was $ 63 billion in January, breaking the September 2020 all-time high of $ 29 billion."

DeFi farmers are currently switching to Layer 2 exchanges like Loopring or alternative chains like NEO's Flamingo Finance and Binance Smart Chain, both of which have seen an increase in volume recently.

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