On Thursday (April 29), David Grider, Director of Digital Asset Strategy at independent research boutique Fundstrat Global Advisors, talked about Bitcoin ($BTC), Ethereum ($ETH), and the overall crypto market in the firm’s “Weekly Crypto Briefing”. In this article, we focus mostly on his comments about Ethereum.
In the firm’s latest crypto strategy note, Grider said that this week the Ethereum price had broken $2,800 to set a new all-time high. He then went on to say:
We’re maintaining our overweight Ethereum vs. Bitcoin recommendation from April 2020 and reiterating our ~$10.5k price target from January this year.
He then went on to say:
When new investors come to crypto the first asset they generally hear about and buy is Bitcoin before learning about other assets and allocating across the space. We think the same learning curve is playing out with institutional investors right now where the crypto narrative is shifting from Bitcoin to Ethereum and other segments like DeFi and Web 3 apps.
Grider says that one reason Fundstrat is bullish on Ethereum is due to “the large amounts of development happening there and the resulting economic activity in its digital economy.”
The way Fundstrat arrived at a $10,500 price target is by valuing Ethereum “on a revenue multiple basis”.
Fundstrat says that “given the correspondingly strong improvement in fundamentals”, Ethereum “still looks as cheap as it did 3 months ago at half the price”.
Data by TradingView indicates that earlier today (around 05:20 UTC) on crypto exchange Bitstamp the Ethereum price reached $2,871.42, setting a new all-time high.
As for Bitcoin, Grider says that Fundstrat is maintaining its $100K price target for Bitcoin given that they “believe the bull market remains intact”. Grider says that although the Bitcoin price recently fell below its 50-day moving average, this is nothing to worry about since it has happened several times in previous bull market cycles, and it’s the 200-day moving average that Bitcoin has “historically maintained during prior bull runs”.
Finally, it is worth pointing out that Fundstrat remains “bullish not just on Bitcoin and Ethereum but on the entire crypto space”, and still believes that the total crypto market is on its way to a $5 trillion market cap.
Featured Image by “vjkombajn” via Pixabay.com
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
