Ethereum could soon hit a record of R71,500 thanks to its growing power in the crypto market- Fundstrat says

A visual representation of Ethereum. (Photo by Jordan Mansfield/Getty Images)

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• Ethereum’s token looks set for a breakout and could soon top $4,900 (R71,500), research house Fundstrat has forecast.
• Analysts said ether’s market share has grown in recent days, a positive sign for the DeFi-friendly token.
• However, the crypto market is far from predictable, and excitement was building around bitcoin Friday.
• For more stories, go to www.BusinessInsider.co.za.

Ether looks set for a breakout and could soon top $4,900 (R71,500, a new record high, according to technical analysts at Fundstrat.

The research house said the ethereum token’s market share has grown in recent days, which its analysts believe is a bullish signal for the world’s second-biggest cryptocurrency.

JPMorgan analysts have said that market dominance is a good gauge of interest in a token, and a rising percentage is a positive signal for the asset’s price.

Ether’s market capitalisation makes up around 18.3% of the broader crypto market, according to Tradingview data. That’s up from around 17.5% at the start of the week.

It has benefited from a broader rally in cryptocurrencies in recent weeks, but has also been boosted by interest in decentralised finance, where it is the most-used token.

“Ethereum looks to be starting to gain on bitcoin after a near one-month period of underperformance throughout September,” Fundstrat said in a note published Thursday evening.

The price of ether was up 1.4% to $3,790 (R55,300) on Friday, according to Bitstamp data.

Read more: A ‘bitcoin maximalist’ old school value investor breaks down why he thinks the cryptocurrency will hit $100,000 this year – and reveals the 2 altcoins he holds as speculative plays

Technical analysts look at recent trends in charts to try to discern where an asset might be heading next.

Fundstrat said ether’s growing market share should help it gain ground and break past the $4,000 (R58,400) mark. It said a breakout above $4,030 (R58,800)…