Ethereum At A Discount, Why ETH Looks Like BTC In 2017

Reynaldo Marquez

4 years ago

2 mins read

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Ethereum has seen some recovery in the past days, after the crypto market experienced one of its worst months since March 2020. At the time of writing, the second cryptocurrency by market cap trades at $2,823.

A recent report published by Bloomberg Intelligence’s Senior Commodity Strategist, Mike McGlone, claims that ETH is on a “higher-beta bull market path”. McGlone believes ETH could take a similar path to Bitcoin in 2017 when this cryptocurrency when from around $1,000 to $20,000.

After the recent crash, the analyst claims that the market’s speculative excesses have diminished with fundamentals still strong and bullish for the continuation of the rally. Therefore, ETH could be on track to flip Bitcoin’s market cap and take the number one spot on the crypto market. McGlone wrote:

(…) the trend that appears enduring is Ethereum gaining market share vs. Bitcoin. Both have bullish underpinnings, but the foundation and use case of No. 2 is a strong complement to the more macro store-of-value attributes of No. 1.

The “Flippening”, as some members of the crypto community have called it, has already begun to happen in some metrics. Bloomberg Intelligence data suggest that ETH’s 10-day average trading volume has double.

This represents around 80% of Bitcoin’s since the start of 2021 and indicates an advancing trend for ETH towards the number one spot. McGlone wrote:

Ethereum faces competition from other crypto-asset and smart-contract platforms, but the No. 2 crypto has won the adoption race as the go-to for digitalization of money and finance.

Ethereum, The Number One Platform For The “Crypto Gold Rush”

BTC and ETH have two main tailwinds for their rise: global macro-economic conditions, prompt to inflation and low-interest rates, the cryptocurrencies have a diminishing supply versus an increase in demand.

Ethereum’s network has an additional advantage, according to McGlone. The platform host over 10,000 tokens and it has solidified its position as the primary place for the growing DeFi ecosystem. This has given ETH a position of advantage in the crypto space. McGlone added:

Ethereum is uniquely situated as the top provider of virtual shovels amid the crypto gold rush.

$2,000 could become a key support for ETH’s price in case the downtrend persists in the coming days. The previous high of around $4,000 will act as resistance if the price manages to return to these levels. These ranges could become a “bull cage” for a while, as the cryptocurrency enters a consolidation phase. McGlone wrote:

ETH back on an optimistic trajectory just to follow Bitcoin’s 2017 price path. Akin to Ethereum at the start of this year, the benchmark crypto began 2017 around $1,000 and peaked just below $20,000. Ethereum could stay within May’s roughly $2,000-$4,000 range until October and maintain a 2017 Bitcoin-like flight plan.

ETH ETHUSD — Source: Bloomberg Intelligence

(…) the trend that appears enduring is Ethereum gaining market share vs. Bitcoin. Both have bullish underpinnings, but the foundation and use case of No. 2 is a strong complement to the more macro store-of-value attributes of No. 1.

This represents around 80% of Bitcoin’s since the start of 2021 and indicates an advancing trend for ETH towards the number one spot. McGlone wrote:

Ethereum faces competition from other crypto-asset and smart-contract platforms, but the No. 2 crypto has won the adoption race as the go-to for digitalization of money and finance.

Ethereum, The Number One Platform For The “Crypto Gold Rush”

Ethereum is uniquely situated as the top provider of virtual shovels amid the crypto gold rush.

ETH back on an optimistic trajectory just to follow Bitcoin’s 2017 price path. Akin to Ethereum at the start of this year, the benchmark crypto began 2017 around $1,000 and peaked just below $20,000. Ethereum could stay within May’s roughly $2,000-$4,000 range until October and maintain a 2017 Bitcoin-like flight plan.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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