Increased utility in DeFi, NFTs back Ethereum’s 3-year high in its ETH/BTC pair
Ethereum price hit a new all-time high in its ETH/BTC pair and a classic technical analysis pattern suggests the altcoin has a lot more upside.
This week, Ether (ETH) price reached a new 2021 high against Bitcoin (BTC), bringing its year-to-date returns slightly above 350% and according to technical analysis, the rally could extend even further.
On Dec. 1, bids for the ETH/BTC pair hit 0.0835 BTC on Coinbase for the first time this year. The upside move came as a part of an uptrend that started mid-October after Ether bottomed out against Bitcoin at 0.0630 BTC to carve out almost 41% price retracement.
The ETH/BTC price rally reflect deep interest in Ethereum, which is currently the world’s leading smart contract platform by users and market capitalization. This is slightly different than the scenario for Bitcoin, which typically functions as a speculative hedge against inflation across global economies.
As of late, Ethereum has been become a core asset within crypto growth sectors like nonfungible tokens (NFT), decentralized finance (DeFi) and the Metaverse. The firms operating in this space require Ether to run their smart contracts, which in turn, has increased demand for the altcoin and supported a steady uptrend in its price.
Demand for Eth is expected to remain robust in the coming year and this simple fact has many analysts projecting prices within the $6,000 to $10,000 range.