Reaching the $10,000 milestone for Ether (ETH) could be considered the most favorable bet in the current cryptocurrency market environment, as suggested by a well-known analyst. The question remains: Can Ether achieve the $10,000 target during the ongoing bull cycle?
Ether at $10,000: A Crypto Winner
According to a popular crypto analyst named Tyler, Ether hitting $10,000 might be the most advantageous move in the current market. In a post dated June 16, Tyler mentioned that Ether’s price had dropped by more than 4% on the weekly chart, hovering just below the $3,400 mark as of 1:10 pm UTC, based on TradingView data.
Ether’s price has been on a downward trend for more than two weeks since May 27, when it reached a high of $3,939 before facing rejection at the $4,000 psychological barrier.
Will Ether ETFs Propel ETH to $10,000?
Despite optimistic forecasts, Ether continues to struggle to surpass the $4,000 psychological threshold. Furthermore, Ether is currently down by more than 30% from its all-time high of $4,891 in November 2021. A hypothetical surge to $10,000 would signify a price surge of over 194% from its current levels.
Resistance is anticipated at the $3,500 mark for ETH’s price. A potential breakout above this level could lead to the liquidation of over $534 million in leveraged short positions across various exchanges. Should Ether surpass the $3,586 mark, short liquidations could exceed $1 billion, according to CoinGlass data.
Institutional inflows from the inception of the first spot Ether exchange-traded funds (ETFs) could potentially boost Ether’s price action. These ETFs are projected to commence trading by July 2, as stated by Bloomberg ETF analyst Eric Balchunas. However, Securities and Exchange Commission Chair Gary Gensler hinted at a broader timeframe for the launch of spot Ether ETFs, suggesting it could happen within the next three months by the end of September.
Similar to Bitcoin, where ETF inflows played a significant role in its price surge, Ether could also benefit from this trend. By February 15, Bitcoin ETFs had accounted for approximately 75% of new investments in the leading cryptocurrency as it surpassed the $50,000 mark.
Ether Supply Dwindles on Exchanges
Another factor that could potentially trigger a price breakout for Ether is a looming supply shortage. The amount of Ether available on cryptocurrency exchanges has dropped to an eight-year low, indicating a potential upward momentum, as highlighted by popular crypto analyst Quinten. In a post shared with his 112,000 followers on June 18, Quinten François pointed out this significant development.
It is essential to note that this article does not offer investment advice or recommendations. Every investment and trading decision carries risks, and readers are advised to conduct their own research before making any financial decisions.