For Ethereum, ‘$10,000 is basically programmed into the matrix.’ Here’s why
Crypto trader and analyst, Lark Davis, in a recent video, discussed how he saw a big move in Ethereum prices from the current $3400 levels to $10,000 in the coming days. He said,
“At this point, $10,000 is basically programmed into the matrix.”
He listed down some key factors that could play a role in Ethereum’s rally.
‘Big money crowd’ taking an interest
Davis presented Ethereum as a major leaguer that was gaining traction within the banking and institutional investment community. This means, apart from retail investors, big players have been taking notice of ETH for their crypto exposure. Davis emphasized,
“When you have the likes of Ark Invest out there shilling Ethereum to the institutional money crowd, Watch out!”
This was in context of the SALT conference last week, when Ark Invest CEO Cathie Wood had expressed confidence in Ethereum. Davis said that the investment company’s decision to earmark a 3:2 ratio for Bitcoin and Ethereum investment, respectively, was a major push for the smart contract platform. He also pointed out that ETH’s utility was “finally catching up” and that it can take ETH to $10k and beyond.
He further compared ETH’s performance to major funds and indices in the past month.
ETH outperformed with double-digit returns against traditional market players like S&P 500, Nasdaq 100, and Dow Jones. During the same period, ETH was ahead of BTC as well. Davis also reflected on a high correlation between Nasdaq and ETH. It, therefore meant, that ETH also has high potential and was high risk as an investment.
Pondering over other technicals, Davis didn’t see any big dump in ETH’s price. Instead, he said expected a jack-up in price due to Ethereum’s “supply crisis.” He opined that a large amount of Ethereum leaving the exchanges is a bullish sign, as it represents accumulation. Looking at HODLer data, he said,
“87% of Ethereum supply has not moved on-chain for three months or longer. 87% of the supply! That is insanity.”
He further explained that this was due to investors being unwilling to sell below the previous all-time high. The HODLers in turn expect a new ATH. Additionally, he said that the HODLers were also keeping an eye on ETH locked in DeFi protocols, ETH 2.0 staking, and the coin’s “burning.” Over $1.1 billion worth of ETH has been burned.
According to the analyst, all these factors represent a positive trend as (DeFi) protocols like Arbitrum and NFTs have a huge amount of ETH locked in. And lastly, he made a mention of Ethereum layer-2 “taking off.”