Ethereum’s Path to $10,000: Analysts Weigh in on the Most Asymmetric Bet in Crypto

TLDR

• Ethereum’s price reaching $10,000 is considered the most “asymmetric bet” in the current crypto market by some analysts, representing a potential 194% increase from current levels.
• Institutional inflows from the first spot Ether ETFs, expected to start trading by July 2, could boost ETH’s price, similar to how Bitcoin ETFs contributed to BTC’s rally earlier this year.
• Ether’s supply on exchanges has hit an eight-year low, potentially leading to a supply squeeze and further upward momentum for the cryptocurrency.
• Despite the bullish predictions, Ether is currently struggling to break above the $4,000 psychological mark and faces significant resistance at the $3,500 level.
• The SEC’s announcement to conclude its investigation into Ethereum’s security status has led to a 5% surge in ETH’s price, coupled with increased whale activity and market optimism.

Analysts are eyeing Ethereum (ETH) as a potential game-changer, with some suggesting that the second-largest cryptocurrency by market capitalization could be the most “asymmetric bet” in the current market conditions.

According to popular crypto analyst Tyler, Ether’s price reaching the $10,000 mark could be the best bet in the crypto space, despite the challenges it faces in breaking above the $4,000 psychological level.

#Ethereum supply on exchanges is at an 8-YEAR LOW

Meanwhile institutional demand will be unlocked through the $ETH ETF in July

You don’t need to have a degree to understand what is about to happen pic.twitter.com/6vZxP3Ogw7

— Quinten | 048.eth (@QuintenFrancois) June 18, 2024

Ether’s price has been in a downtrend for over two weeks, trading just below the $3,400 mark as of June 19, 2024.

However, the cryptocurrency has recently experienced a 5% surge following the U.S. Securities and Exchange Commission’s (SEC) announcement that it would conclude its investigation into Ethereum’s security status

. This development, along with significant whale activity, has boosted market sentiment and optimism surrounding Ether.

One of the key factors that could contribute to Ether’s price rally is the anticipated launch of the first spot Ether exchange-traded funds (ETFs).

These ETFs are expected to start trading by July 2, according to Bloomberg ETF analyst Eric Balchunas, although SEC Chair Gary Gensler has provided a broader timeframe, indicating that trading could begin within the next three months.

Institutional inflows from these ETFs could potentially drive Ether’s price higher, similar to how Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency earlier this year.

Another factor supporting Ether’s upside potential is the reducing supply of the cryptocurrency on exchanges. According to onchain data provider CryptoQuant, Ether’s supply on exchanges has reached an eight-year low of 16.7 million ETH, following a 9.3% drop over the past 90 days.

This decrease in supply could lead to a potential supply squeeze, translating into more upward momentum for the cryptocurrency, as noted by popular crypto analyst Quinten François.

#Ethereum supply on exchanges is at an 8-YEAR LOW

Meanwhile institutional demand will be unlocked through the $ETH ETF in July

You don’t need to have a degree to understand what is about to happen pic.twitter.com/6vZxP3Ogw7

— Quinten | 048.eth (@QuintenFrancois) June 18, 2024

Despite the bullish predictions, Ether still faces significant challenges in breaking above the $4,000 psychological mark and faces 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 SEC’s recent announcement regarding the conclusion of its investigation into Ethereum’s security status has further bolstered market sentiment. ConsenSys, an Ethereum software company, has been in communication with the SEC, seeking clarification on the status of the investigation and the potential impact of spot Ether ETF approvals on the ongoing probe.

The company has also expressed its commitment to seeking additional regulatory clarity regarding its user interface software, MetaMask Swaps, and Staking, emphasizing the importance of establishing explicit guidelines for the crypto industry to flourish.