Ether's Potential Ascent to $10K Anticipated to be Riskiest Bet Amid Tight Market Conditions
Summary:
Renowned analyst Tyler suggests Ether (ETH) ascending to $10,000 could be the riskiest wager in the current crypto market, despite currently hovering just under $3,400. Ether's progress has been affected by significant resistance at the $3,500 mark. The predicted launch of Ether ETFs on July 2 might boost Ether's value, although the Securities and Exchange Commission Chair suggests a broader timeline for their rollout. Ether may also increase due to a potential supply squeeze, with supplies on crypto exchanges at an eight-year low.
Renowned analyst Tyler states that Ether's (ETH) potential rise to $10,000 could be deemed as the most "unbalanced gamble" under the current state of the crypto market. The question being posed is, will Ether manage to hit the $10,000 mark in the ongoing bull cycle? According to Tyler's post dated June 16, the journey to $10,000 for Ether is the riskiest wager in the existing market landscape given its fluctuations, even though it may seem irksome, we must trade based on market movement and not emotions.
Ether has seen a reduction of over 4% in its value on the weekly chart, and presently, its price hovers just under the $3,400 mark at 1:10 p.m. UTC as shown by data from TradingView. From May 27th onwards, Ether's value has been on the decline, after climbing to a high of $3,939, and subsequently being prevented from crossing the threshold of $4,000.
Despite the optimistic forecast, Ether has been unable to cross the $4,000 barrier. Furthermore, its value is over 30% lower than the peak it reached in November 2021 at $4,891. An exploratory scenario of Ether hitting the $10,000 mark would imply a price increase of over 194% from where it currently stands.
A significant hurdle of $3,500 awaits the ETH price, and if surpassed, more than $534 million in accumulated leveraged short positions on all exchanges would be eliminated. If ETH rises over the $3,586 mark, short liquidations would exceed $1 billion, as suggested by Coinglass data.
The anticipated rollout of Ether exchange-traded funds (ETF), which is set to initiate trading by July 2, could stimulate Ether's pricing. Nonetheless, Securities and Exchange Commission (SEC) Chair Gary Gensler indicated a broader timeline for the commencement of spot Ether ETF trading, implying a possible kickoff before the end of September.
In the case of Bitcoin (BTC), ETF inflows substantially contributed to its price rise. By the middle of February, Bitcoin ETFs were responsible for about 75% of new investments in the world’s most significant cryptocurrency as it crossed the $50,000 mark.
Imminent price breakouts for Ether could also be due to a potential supply squeeze, given the eight-year low in the supply of Ether on crypto exchanges. Crypto analyst Quinten suggests that this could result in further upward momentum. According to Quinten's post dated June 18, with a decrease in the supply of Ethereum on exchanges, and institutional demand set to be unleashed by the Ethereum ETF in July, a price surge seems very likely.
Investment guidance or recommendations are not included in this article. Every investment or trade movement comes with inherent risks, and hence, investors are encouraged to do their own independent research before making any investment decisions.
Published At
6/18/2024 7:04:00 PM
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