ETH Price Strikes $700, Ethereum Could Be the Best Risk-Return Right Now

Just while you have been paying all the attention to Bitcoin (BTC) at the moment, and why not, it would be a good thought to look at Ethereum (ETH) that doing equally well. Earlier today, Ethereum (ETH) crossed the crucial levels of $700. At press time, ETH is trading at $701 with a market cap of $79 billion.

As CoinGape reported yesterday, 2021 could be the year of Ethereum investors with institutional ETH buying going up. Moreover, considering that ETH is trading at a 50% discount from its all-time high, there’s enough room for it to catch up with BTC. Looking at these parameters, ETH could be the best risk-return for investors at this point.

At its current price of $710, investors can still buy $ETH for more than 50% off its previous ATH.

Considering (1) how correlated BTC and ETH are historically, and (2) how BTC has already surpassed its ATH, it’s arguably the best risk-return right now in crypto.

— Spencer Noon (@spencernoon) December 28, 2020

On the other hand, if we even look at the charts, Ethereum continues to higher highs and higher lows. With news highs, ETH has been taking crucial support at every move upwards.

$ETH (USD)

Endless series of higher highs and higher lows, with the most recent low confirmed by a fresh higher high.

I deem this pattern the "Stairway To Heaven." pic.twitter.com/sZM2m9ts0w

— The Wolf Of All Streets (@scottmelker) December 27, 2020

Furthermore, after the massive BTC bull run in the last three days, the ETH/BTC pair has entered oversold territory. It is currently at a crucial resistance and hinting at bullish divergence ahead.

$ETH / $BTC

Beautiful oversold bullish divergence and pop. Now it's time to pay attention – the pair is at a key resistance. pic.twitter.com/L0qswHz2Lv

— The Wolf Of All Streets (@scottmelker) December 27, 2020

Institutions Will Soon Their Eyes to DeFi

One of the biggest strongholds of Ethereum is that the blockchain has been host to some of the biggest decentralized finance (DeFi) applications. Ethereum controls more than 70% of the DeFi activity at the moment. Due to the DeFi mania in summer 2020, ETH also remains the most-traded crypto asset for the year.

Crypto market expert Alex Krüger believes that institutions will eventually turn their eyes to DeFi. He writes:

“Institutional investors will eventually turns their eyes to DeFi. Not just yet. But it’s a matter of when, not if. Prices will then go up so much, you will all be in disbelief. Don’t see that happening in 2021 though. Need more regulatory clarity”.

So just at the time when you have been enjoying the wild run in Bitcoin (BTC), you probably won’t want to missout the Ethereum opportunity as well.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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