Ethereum Predicted to Reach $27,000 thanks to Reduced Miner Selling Pressure: Ryan Berckmans
Summary:
Ryan Berckmans, an Ethereum investor, predicts that Ether (ETH) could reach $27,000 in the ongoing bullish cycle due to reducing selling pressure from miners following Ethereum's transition from a proof-of-work to a proof-of-stake consensus mechanism. This change, implemented through the Merge upgrade, significantly reduces the downward price pressure often seen with proof-of-work coins. Berckmans anticipates an over 80% reduction in proof-of-work selling pressure compared to the previous cycle.
Ryan Berckmans, a prominent member and investor in the Ethereum community, speculates that Ethereum's digital currency, Ether (ETH), has the potential to surge to a high of $27,000 during the course of the ongoing bullish phase. In his recent conversation with Cointelegraph, Berckmans speculated that the value of Ethereum could range from $12,000 to $27,000 over the course of the next year and a half to two and a half years.
Berckmans attributes this accelerated success of Ethereum to the declining selling pressure from miners, which became a non-factor when Ethereum transitioned from a proof-of-work consensus algorithm to a proof-of-stake consensus algorithm in September 2022, through the Merge upgrade.
This is the first bullish cycle Ethereum has undergone since integrating the proof-of-stake system. Berckmans emphasized that the necessity for miners to continually sell large quantities of cryptocurrency to cover their operational expenses exerts a downward pressure on the proof-of-work coins' prices.
Berckmans estimated that Ethereum was majorly responsible for most proof-of-work related costs at the peak of the last cycle, even though Bitcoin had a larger market capitalization. He said, “We can anticipate an over 80% reduction in the total selling pressure from proof-of-work compared to the previous cycle.”
For more detailed insight into Berckmans' Ethereum projections for the ongoing market cycle, follow the complete video on our YouTube channel.
Published At
2/7/2024 8:00:00 PM
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