Goldman Sachs Increases Ethereum 2021 Price Target

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Last Updated on 4 November 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Ethereum set a new all-time high this week, and now trades close to that high. In fact, the major psychological threshold of $ 5,000 appears to be within reach.

But some believe that the rise in ETH could increase even more…

Indeed, in an analyst note, Bernhard Rzymelka, managing director of global markets at Goldman Sachs, hinted that Ethereum could reach $ 8,000 over the last two months of the year, judging that ETH may just now be reaching the:

Starting point of an accelerating rally.

The sheer fact that investors have accepted Ethereum as a good alternative to Bitcoin this year is also seen in the growing searches for the flippening, the moment in time when the market capitalization of Ethereum will outgrow that of Bitcoin.

Bernhard noted that cryptocurrencies have closely followed inflation over the past two years, and studied a comparison of the Bloomberg Galaxy Crypto Index with a measure of market-based inflation forecasts, which shows a very strong correlation.

Advertentie.

70% over the next two months

According to him, the price of Ethereum has tracked inflation particularly closely and he also concluded that Ethereum tends to act as pro-cyclical, meaning it rises when the economic outlook is good.

Thus, pointing out that inflation forecasts have recently risen sharply, Goldman Sachs estimated that the price of Ether could be poised to explode as well.

In more detail, Goldman Sachs outlined the likely evolution of Ethereum by the end of the year, forecasting a rise to around $ 6,000 around mid-November, before a correction. which would bring ETH back to $ 5,000 in early December, followed by a rally that would bring Ethereum back to $ 8,000 before the end of the year. If correct, this would imply a rise in the price of Ethereum by over 70% over the next two months.

Vitalik Buterin can only rise on the Forbes billionaire list in this manner.

Dutch crypto analist Michaël van de Poppe is even more bullish about Ethereum and thinks it can reach $20k soon.