Ethereum's Price Soars by 8.9%, Reigniting Market Optimism


Ethereum's Price Soars by 8.9%, Reigniting Market Optimism
© Getty Images/Jack Taylor

The cryptocurrency market witnessed Ethereum's (ETH) price surge by 8.9% in the last 24 hours, reviving bullish sentiment among investors and enthusiasts. This development comes after a period where Ethereum was significantly outperformed by Solana (SOL), sparking debates within the crypto community.

Jordi Alexander, the Chief Investment Officer at Selini Capital, expressed his enthusiasm on X (formerly Twitter), stating, “The revenge of the ETH is starting”.

Alexander's comments followed a recent uptick in several altcoins and news of Michael Saylor purchasing an additional $615 million worth of Bitcoin on Dec.

26, laying a solid foundation for Ethereum's potential upward trajectory in the coming weeks. “The risk/reward on Ether is so compelling here, that I see a liquidity black hole now forming in January,” he added.

Predictions and Market Dynamics

Adding to the bullish outlook, a pseudonymous trader known as Pentoshi shared a semi-cryptic chart on X, suggesting an approximate price target of $3,485 for Ether. “Slowly, then all at once,” he commented, hinting at a gradual build-up leading to a rapid increase in Ethereum's value.

The recent price movements come amidst heightened tension between the Solana and Ethereum communities. While Ethereum has seen a year-to-date gain of 102%, it has been overshadowed by Solana's staggering 951% increase since the year's beginning, according to TradingView data.

Solana's significant price performance and increased on-chain activity have led some to argue that its lower fees and faster settlement times make it a superior blockchain compared to Ethereum.

Ethereum's Counterarguments

However, Ethereum supporters have countered these claims by highlighting the network's suitability for larger entities conducting business on-chain.

They point to layer-2 scaling solutions like Optimism and Arbitrum as examples of Ethereum's ability to offer cheaper fees and maintain its competitive edge in the blockchain space. Ethereum's recent price spike has rekindled interest and optimism in its future potential.