Analysts Evaluate Ethereums Potential Path to 10000 Deeming it the Most Asymmetric Bet in Crypto
Ethereum’s potential to reach $10,000 is being hailed as the most “asymmetric bet” in the current crypto market by analysts, with a potential 194% increase from current levels. The anticipated institutional inflows from the first spot Ether ETFs, set to begin trading by July 2, could mirror the impact of Bitcoin ETFs on BTC’s rally earlier this year. With Ether’s supply on exchanges at an eight-year low, there is potential for a supply squeeze and further upward momentum for the cryptocurrency.
Despite these optimistic forecasts, Ether is currently facing challenges in surpassing the $4,000 psychological mark and is encountering significant resistance at the $3,500 level. However, the recent announcement by the SEC to conclude its investigation into Ethereum’s security status has resulted in a 5% surge in ETH’s price, accompanied by increased whale activity and market optimism.
Analysts are closely watching Ethereum (ETH) as a potential game-changer, with some touting it as the most “asymmetric bet” in the current market landscape. Renowned crypto analyst Tyler believes that Ether hitting the $10,000 milestone could be the best bet in the crypto space, despite the obstacles it faces in breaking past the $4,000 psychological level. As of June 19, 2024, Ether’s price has been in a downtrend for over two weeks, trading just below the $3,400 mark.
Following the SEC’s announcement of concluding its investigation into Ethereum’s security status, the cryptocurrency experienced a 5% surge. This development, coupled with significant whale activity, has bolstered market sentiment and optimism surrounding Ether. The anticipated launch of the first spot Ether exchange-traded funds (ETFs) is expected to contribute to Ether’s price rally, with institutional inflows potentially driving the cryptocurrency’s value higher.
Another contributing factor to Ether’s upside potential is the diminishing supply of the cryptocurrency on exchanges. CryptoQuant reports that Ether’s supply on exchanges has reached an eight-year low of 16.7 million ETH, marking a 9.3% drop over the past 90 days. This reduction in supply could lead to a potential supply squeeze, translating into further upward momentum for the cryptocurrency.
Despite the positive outlook, Ether still faces significant challenges in breaking above the $4,000 psychological mark and encountering resistance at the $3,500 level. A potential move above this level could liquidate over $534 million of cumulative leveraged short positions across all exchanges, with short liquidations surpassing $1 billion if Ether were to rise above the $3,586 mark.
The recent announcement by the SEC regarding the conclusion of its investigation into Ethereum’s security status has further boosted market sentiment. ConsenSys, an Ethereum software company, has been in communication with the SEC, seeking clarification on the investigation’s status and the potential impact of spot Ether ETF approvals on the ongoing probe. The company has also expressed its commitment to obtaining additional regulatory clarity regarding its user interface software, MetaMask Swaps, and Staking, emphasizing the importance of establishing explicit guidelines for the crypto industry to thrive.
