Ethereum price: Closing In On $3000 As Bitcoin Dominance Dwindles

Summary:

The Ethereum price continues to march higher, eating into Bitcoin's market share as Fundstrat raises its ETH price target to $10,500.

The Ethereum price continues to march higher, eating into Bitcoin’s market share as Fundstrat raises its ETH price target to $10,500.

As most of the market is firmly focussed on the $3,000 level for the Ethereum price, Fundstrat’s Tom Lee has set his sights higher, much higher.

The Crypto investor, known for his Bullish calls (which until now have proved right, although sometimes a little early), expects the current DeFi boom to send the Ethereum price higher by 358% to $10,500.

Whilst Bitcoin may well be the market leader in valuation terms, Ethereum has outperformed its big brother by a huge margin since starting trading. In the first four months of 2021, the Ethereum price has gained 300% vs. Bitcoins’ 95% return.

With the price currently trading at $2,947, it appears to be only a matter of time before ETH crosses the $3,000 threshold. This event should trigger further buying, sending the Ethereum price on its way to even higher highs.

This latest run higher in the Ethereum price has taken its market cap to a new peak of $339 Billion, or 31% of Bitcoins’ current $1.073 Trillion valuation.

Forecasting 2021 to be the year of the Atlcoin, Lee went on to say:

‘Bitcoin dominance has continued to fall in line with our forecast as Etherum and other alts have had strong performance during 2021. During the prior cycle, bitcoin dominance fell ~55% from 85 to 38 before having a mid-cycle bounce. Thus far this cycle, Bitcoin dominance has fallen ~33% from 70 to 47, implying alts have room to continue outperforming if we see a similar trend as we did during the prior cycle.’

Investors may worry about chasing the Ethereum price higher into this rally. On the Daily chart, we can see that ETH is over-extended with an RSI of 74.50. However, the price can continue to squeeze higher. History shows the RSI can reach as high as 90.0 before the market tops out.