This is exactly what experts say about the second cryptocurrency. For example, analyst Jim Bianco believes that if an investor can cope with a sharp drop in ether prices, it will ultimately pay off many times over.
"Some of the coins, such as ethereum, will be more expensive in the future," the president of Bianco Research told CNBC. "But you will have to go through a lot more of what we saw last week, in the next few months or so."
According to Bianco, speculative price surges mask a long-term bullish picture as cryptocurrency now has the ability to successfully change the financial system.
Bianco warns that coins are extremely vulnerable to a 50% to 70% drop at any given moment because it is still a new technology. But when the implementation phase is over and the cryptocurrency plays a fundamental role in the real economy, prices, in general, will be significantly higher.
But investors who stayed in the market during the years of the formation of a digital asset will be able to make money on this.
Bianco has owned a crypto portfolio since 2017 and is not a supporter of digital coin speculation. He owns ether, but not bitcoin.
And another well-known expert, Mike McGlone of Bloomberg, stated that "Ethereum is to fintech what bitcoin is to gold," meaning that Ethereum is superior to traditional fintech in the same way that bitcoin is superior to gold as a store of value.
Against this background, the ether cryptocurrency is very promising in the long run. Ethereum is now growing and could outpace bitcoin in capitalization, as the second-largest blockchain platform and its own cryptocurrency are leading the world in a very rapid digital transition.
At the moment, the market capitalization of ETH is $324 billion, which is slightly less than half of the market capitalization of bitcoin. At the same time, it is now higher than that of PayPal, Coca-Cola, Nike, Netflix, Walt Disney, and many other well-known companies.
In the meantime, preparations continue for the launch of Ethereum 2.0 and the transition to the Proof of Stake (PoS) algorithm. As reported today, the total amount of ETH blocked by validators in the Ethereum 2.0 deposit contract has reached a new all-time high of more than five million ethers ($13.7 billion).
Well, the long-term outlook for ethereum looks promising, besides, ether is not as expensive as bitcoin to buy and hold for a long time, at least for the sake of experiment.
But if you are one of the speculators, then here is the forecast for the nearest targets for the second cryptocurrency. The key level now remains 2,803.53 (100 by Fibo Expansion). If it manages to break through and gain a foothold above, including overcoming the psychological level of $3,000 per coin, ETH/USD may continue to rise to 3,246.55 (161.8 by Fibo Expansion).
An alternative scenario is a drop in the ether to support level 2,524.10 if it is not possible to break through the resistance at 2,803.53 now.