Ethereum to over USD 10,500? Fundstrat Global Analyst is convinced
Ethereum exchange rate (ETH) was invented by Vitalik Buterin and is a great blockchain for smart contracts, dapps and even token creations.
A strategist at Fundstrat Global believes the Ethereum price by Bitcoin Up can easily reach the $10,500 mark after ETH set a new all-time high on most exchanges just Tuesday.
Ethereum soon above USD 10,000 due to DeFi?
David Grider, an analyst and strategist at Fundstrat Global Advisors and colleague of Charlie Lee, believes the second largest cryptocurrency, Ethereum, has a good chance of reaching the $10,500 mark, Bloomberg reports.
Grider’s expectation is based in part on the high popularity of Ethereum-based financial apps and DeFi.
The network is also now one step closer to implementing its long-awaited update to Ethereum 2.0, which should allow it to process the same gigantic amount of transactions that Visa and Mastercard process for their customers.
On 19 January, the strategist published a note saying that Ethereum-based DLT computing could be the future of the cloud and that ETH is the „best risk/reward investment play in crypto“.
Demand for ETH meets falling supply
In addition, Ethereum is also expecting an Ethereum Improvement Proposal (EIP), whereby some of the fees paid in ETH will be wiped out forever to reduce the total amount of ETH. In the best case scenario, this may even lead to a long-term decrease in the number.
With the growing DeFi field, Ethereum is becoming more and more important for processing transactions. Those who want to use dApps on ETH cannot get around the native cryptocurrency. Still, there is a long way to go to reach a possible price target of 10,500 USD.
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Ethereum price on the verge of a breakthrough
The decisive factor is whether Ethereum breaks through its all-time high in the next few days or weeks and enters price discovery. From this point on, there are no limits for ETH for the time being, as these heights have never been reached before.
Many assume that prices of USD 1,800 and more are quite possible after a breakthrough. However, one should not forget at this point that Ethereum has risen 91% this year alone.
The all-time high was just exceeded on most exchanges, but the selling pressure was too high and sent the ETH price back towards USD 1,250.
We are curious to see how Ethereum will perform in the next few days and will keep you updated.