Ethereum Is Ready For Inevitable Climb Over $10,000, Says Crypto Analyst
September 20 2021 - 12:00PM
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The year has come with a lot of optimistic predictions for the
price of the second-largest cryptocurrency by market cap. Its
current trends have seen analysts put the digital asset at above
$10,000 by the end of the year. And now, another crypto analyst,
Lark Davis, has echoed what his counterparts have been saying in
regards to the altcoin. Lark believes that Ethereum breaking above
$10,000 is inevitable and only a matter of time. Saying that the
digital asset is poised to grow 190% would see it break this price
point. The crypto analyst lays out his analysis on his YouTube
channel, which currently has over 433K subscribers. In the video,
Lark says that this price is already “programmed in” and adds that
“it’s coming.” Declining Ethereum Exchange Reserves Lark starts out
his analysis by pointing to the depleting supply of Ethereum. More
specifically, the exchange supply of Ethereum being low such that
there isn’t a lot of ETH waiting to be sold as the price goes
higher. This is evident in the recent volume of ETH being withdrawn
from exchanges. Recently, Ethereum saw record volumes being taken
out of exchanges as 1.2 billion worth of ETH had been withdrawn
from centralized exchanges last week in the space of 24 hours.
Related Reading | Ethereum Sees Record Daily Volume Withdrawn
From Centralized Exchanges The analyst points out that the decline
in the available supply of Ethereum is leading to a supply-side
crisis. Bulls have accumulated some of their biggest bags so far
and will most likely not be dumping their bags soon. More often
than not, waiting for the price of the asset they invested to 5-10X
before they think about dumping their bags. So these long-term
holding is creating a supply shock for Ethereum. ETH price
struggles with new week opening | Source: ETHUSD on TradingView.com
Comparing the supply to last year, Lark notes that the exchange
supply continues to drop dramatically, save for a few spikes. While
supply outside exchanges grows as people move their coins out of
exchanges to use for other activities like staking. Comparing the
charts and movement, Lark points out that while the supply drops,
the price of Ethereum rose with this decline. This trend is similar
to the current trend of Ethereum. Exchange supply has fallen and if
history repeats itself, this puts the market close to testing
another price discovery for the digital asset. ETH Burn Is Rocket
Fuel For Price Crypto analyst Lark Davis brings to the forefront of
the ETH burn. With over 300,000 ETH already burned in just six
weeks after the upgrade, amounting to over $1.1 billion, Lark sees
about 1 million ETH being burned by the end of the year. This is
adding to the supply shock currently expected to come. With less
ETH coming into circulation, supply is going to dwindle. Related
Reading | TA: Ethereum Plunges to $3,150: Can Bulls Save the
Day? Lark refers to this rate of burn as “rocket fuel for price
appreciation.” This amount of Ethereum being burned gives credence
to Lark’s prediction for a 190% increase in the price of ETH, which
would lead to the altcoin breaking the $10,000 price point.
Finally, Lark points out that the big money is starting to notice
Ethereum. An example of this is Cathie Wood revealing her firm, ARK
Invest, has gained more confidence in the asset, explaining that
they would split their crypto bags into 40% ETH and 60% BTC. This
interest from institutional investors will be the driving factor
for Ethereum towards $10,000. Featured image from CryptoPotato,
chart from TradingView.com
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