Ethereum’s price action in recent times has been lackluster to say the least, as it has been closely tracking that of Bitcoin as it trades within a wide and long-held range.
It does not appear that this is emblematic of the cryptocurrency’s long-term outlook, however, as one prominent venture capitalist is now noting that he anticipates ETH to see massive upside during the next parabolic market cycle.
He notes that this growth could be catalyzed by its potential outperformance of Bitcoin, which could drive its USD trading pair to highs of $7,500.
Despite this seeming like a pipe dream at the present moment, he does offer a compelling path forward for how this could occur.
It is also important to note that Ethereum has been building an incredibly strong foundation over the past couple of years, with it garnering massive utility and usership.
This fundamental strength may only be bolstered by the imminent launch of ETH 2.0 slated to occur at some point in Q3 of this year.
Ethereum Poised to Rally To $7,500 During Next Parabolic Cycle, Claims VC
Ethereum is presently trading within the mid-$200 region as it consolidates alongside Bitcoin and many of its other peers.
This lackluster price action has come about as a result of the lack of direction seen by the aggregated crypto market – which can mostly be blamed on Bitcoin’s consistent rejections at $10,000.
Ethereum’s bout of sideways trading may provide investors with an ideal accumulation opportunity, as one VC believes that ETH will post massive gains during the course of its next uptrend.
Chris Burniske – a partner at Placeholder – mused this possibility in a recent tweet, offering a massive upside target of $7,500.
“If BTC goes > $50,000 in the next cycle, and ETHBTC returns to its former ATH, then expect to see ETH > $7,500,” he stated.
Burniske further went on to add that Bitcoin trading at over $50,000 is important because it would mark it having over $1 trillion in network value.
“Why Bitcoin > $50,000? As discussed in May 2019, if $BTC is half as volatile in this cycle as it was in the last, we would still expect it to cross $50K and $1 trillion in network value. $1 trillion has been a long time coming for this macro-asset.”
What Could Back This 3,000% ETH Rally?
As for what could fuel this parabolic growth, Burniske explains that after siphoning funds into Bitcoin, mainstream investors will then look towards Ethereum as the “new kid on the block” – catalyzing a buying frenzy.
He also points to its strong on-chain economies as another factor that could help fuel its future growth.
It is a fact that ETH has seen a massive uptick in both its utility and usership in recent times. The rise of DeFi in 2019 kicked off this massive influx of new Ethereum users, while heightened on-chain stablecoin issuance in 2020 has further perpetuated its network activity.
Without their being any clear impetus for a massive influx of fresh capital into the crypto markets, however, it still remains unclear as to how likely another parabolic cycle truly is in the years ahead.
Featured image from Shutterstock. Charts from TradingView.