The cryptocurrency market has seen some low performance recently, and even the strongest tokens aren't granted immunity. Ethereum is the second-largest cryptocurrency, just behind Bitcoin, and it has been seeing quite the price drop in recent weeks.
But what does that mean for investors in the long run? Will Ethereum outperform Bitcoin?
Ethereum Price Drop
Ethereum and other cryptocurrencies fell in price in the latest updates. As of Friday morning, the value of the cryptocurrency dropped by 3.43 percent over the last 24 hours, Express reported. On Thursday afternoon, ETH was priced at $2,388.08, and on Friday morning, it was priced at $2,331.18.
ETH is still nursing the near-50 percent price dip from the May crash. Although some investors were able to make some money back, the coin and the market are both vulnerable to volatility.
Ethereum Price Prediction
Despite the grim short-term performance of the cryptocurrency, some remain upbeat.
The pullbacks could become points of entry for interested investors, and where current investors can accrue more tokens. With the purchases, it is most likely going to become a setup that helps propel Ethereum back up and break out of the bearish and slow performance.
Celebrities and personalities with a large enough influence have also proven that they can affect changes in price--even though experts don't see this as sustainable practice and won't last forever.
Even Elon Musk's Tweets won't be all that powerful to move the crypto market someday.
Based on what data?— Elon Musk, the 2nd (@elonmusk) June 17, 2021
Sentiments towards Bitcoin and Etherum continue to provide a positive trajectory for the tokens overall, in spite of the current drawbacks.
It is still possible for Ethereum to reach a potential breakout at around $3,800, it just needs to move past the resistance zones and selling pressures.
Ethereum to Trump Bitcoin
Over the last 12 months, Ethereum price has shot up to 1,000 percent. During the same period, Bitcoin has soared at 300 percent, closing the still sizable gap between the largest cryptocurrencies' market capitalization. Bitcoin is seeing around $750 billion in market value, and Ethereum is seeing nearly $300 billion.
Ethereum's blockchain has also become a stable ground for decentralized finance or DeFi, recreating traditional bank products like loans and insurance but in cryptocurrency. Non-fungible tokens or NFTs are also built on top of Ethereum's blockchain and have been seeing immense popularity.
According to Juan Villaverde of Weiss Ratings, Bitcoin is like gold and Ethereum is oil, he told MarketWatch. Bitcoin is viable as an investment and doesn't need to do much, it just needs to remain secure.
Ethereum is like oil in the sense that it is a commodity, with incredibly diverse applications to everyday life. It needs to be secure, accessible, and easy to use in the digital economy.
It might be because of this that experts see ETH gaining ground in market shares versus Bitcoin. The volume of Etherum is also a leading indicator for its advancement, as now it's at the 50 percent mark versus Bitcoin in terms of market cap.
Both Bitcoin and Ethereum are seeing bullish or rising underpinning and Ethereum's foundation and usefulness is a strong complement to Bitcoin's "macro store-of-value attributes." That usefulness is what makes Ethereum a compelling token.
"In the long, long, multi-year timeline, yes, ethereum will flip bitcoin," said Nathan Cox, Chief Investment Officer of digital asset investment manager called Two Prime, per Forbes. "It's just now starting to be understood by the second-tier adopters. Ethereum's utility alone will outstrip anything else."