Ethereum has been smashing all its previous records. We have seen the majority of the top tokens being highly bullish in 2021. Therefore, it is not surprising that Ethereum has crossed the $3000 mark and is continuing to gain consistently. However, the bigger question is will Ethereum hit the $5000 mark this year?
The answer depends on many factors but this one is the most significant – it all depends on how effectively Ethereum’s recent updates will be able to bring down the network congestion and the exorbitant gas fees. Isn’t it too early to brand Ethereum 2.0 a technical success? We are yet to see lower gas prices and subsequently the transaction processing time and fees.
While traders and experts may differ on the underlying reasons for Ethereum’s upsurge, there is no denying that the shift in basic consensus mechanism/ transaction processing protocols planned for Ethereum is going to be the most crucial for altcoin’s future.
You cannot be wrong about Ethereum hitting the $5000 mark in 2021, if the new integrations to the Ethereum Network does what it is intended to. For now, we only know the “intent” and some efforts to materialise them. We haven’t seen the actual difference though. So, it is also difficult to deny that the current price rise is mostly because of the market sentiment. Anticipation of Ethereum 2.0, is definitely a factor but how much has it contributed in Entereum’s journey to $3000 this year is debatable.
In conclusion, for traders the entry and exit points are crucial, so you may have to hold a bit to get a favorable situation. For individual and retail investors thinking long-term, you can’t go wrong with Ethereum.