Ethereum’s Road to $10,000: Analysts Weigh in on Crypto in the Most Asymmetric Bet
TLDR
Ethereum price reaching $10,000 is considered the most “unbalanced bet” in the current crypto market by some analysts, which could increase by 194% from the current level. Expected to start trading on July 2nd, Ether ETFs could boost the value of ETH from the initial spot institutional earnings, just like the Bitcoin ETFs that contributed to BTC's rally earlier this year. Supply on Ether exchanges has hit an eight-year low, which could lead to a supply glut and further upside for the cryptocurrency. Despite the bearish forecasts, Ether is currently struggling to break out of the $4,000 psychological mark and is facing significant resistance at the $3,500 level. The SEC announcement to summarize the investigation into the security situation of Ethereum, including a 5% increase in the price of ETH, whale activity and market optimism.
Analysts are seeing Ethereum (ETH) as a game changer, with some suggesting that the second-largest cryptocurrency by market capitalization could be the most “unbalanced bet” in the current market environment.
According to popular crypto analyst Tyler, Ether's $10,000 mark may be the best bet in the crypto space, despite challenges to break above the $4,000 psychological level.
#Ethereum exchange supply is at an 8-year low.
Meanwhile, institutional interest through the $ETH ETF opens in July.
You don't need a degree to understand what's about to happen pic.twitter.com/6vZxP3Ogw7
– Quinten | 048.eth (@QuintenFrancois) June 18, 2024
Ether's price has been stagnating for over two weeks, trading below $3,400 since June 19, 2024.
However, the cryptocurrency recently experienced a 5% increase after the US Securities and Exchange Commission (SEC) announced that it would end its investigation into Ethereum's security status.
. This development, along with massive whale activity, boosted market sentiment and optimism around Ether.
One of the key factors contributing to Ether's price rally is the launch of Ether Exchange Traded Funds (ETFs).
According to Bloomberg ETF analyst Eric Balchiunas, these ETFs are expected to start trading on July 2, although SEC Chairman Gary Gensler offered a broader timeframe, indicating that trading could begin in the next three months.
Institutional income from these ETFs could boost ether's value, just as bitcoin ETFs accounted for 75% of new investment in the world's largest cryptocurrency earlier this year.
Another factor supporting Ether's upside potential is the dwindling supply of the cryptocurrency on exchanges. According to onchain data provider CryptoQuant, Ether's exchange supply hit an eight-year low of 16.7 million ETH, a 9.3 percent decline over the past 90 days.
As noted by renowned crypto analyst Quinton Francois, this decrease in supply could lead to a supply glut, leading to an upward trend in the cryptocurrency.
#Ethereum exchange supply is at an 8-year low.
Meanwhile, institutional interest through the $ETH ETF opens in July.
You don't need a degree to understand what's about to happen pic.twitter.com/6vZxP3Ogw7
– Quinten | 048.eth (@QuintenFrancois) June 18, 2024
Despite the bleak predictions, ether still faces big challenges to break above the $4,000 psychological mark and will face resistance at the $3,500 level.
A possible move above this level could wipe out more than $534 million in backed short positions across all exchanges, with short liquidity exceeding $1 billion if Ether rises above the $3,586 mark.
The SEC's recent announcement regarding the conclusion of the investigation into the security situation of Ethereum further strengthened the market sentiment. ConsenSys, the ethereum software company, has contacted the SEC, clarifying the status of the investigation and may create spot ether ETF approvals in the ongoing investigation.
The company expressed its commitment to seeking more regulatory transparency regarding its user interface software, MetaMask Swaps and Staking, emphasizing the importance of clear guidelines for the development of the crypto industry.
