A strategist from Fundstrat Global believes that Ethereum’s price can easily reach the $10,500 mark after ETH only set a new all-time high on most exchanges on Tuesday, January 19th.
If you want to read more about Ethereum’s course and why the analyst David Grider thinks it will easily reach the $10,500 mark, download for free the Born2Invest mobile app. Our companion app brings you the most important updates in the crypto sector and the latest business news in the world so you can stay informed.
Ethereum soon above $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.
In addition, the network is 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 Jan. 19, 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 a portion of the fees paid in ETH will be wiped out forever to reduce the overall 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 increasingly important for processing transactions. If you want to use dApps on ETH, there is no way around the native cryptocurrency. Still, it has a long way to go to reach a possible price target of $10,500.
Ethereum price on the verge of a breakthrough
The decisive factor is whether Ethereum puts its all-time high behind it in the next few days or weeks and moves into Price Discovery. From this point on, there are no limits for ETH for now, as these heights have never been reached before.
Many assume that after a breakthrough, prices of $1,800 and more are quite possible. However, it should not be forgotten at this point that Ethereum had a 91% increase 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 $1,250.
Ethereum is primarily an open source platform with its own blockchain for the processing of self-executing intelligent contracts. In short, smart contracts. Fees for the transactions of the smart contracts are paid with the in-house crypto currency Ether (ETH). ETH is the “gas that drives the Ethereum machinery” and has developed into the second largest cryptocurrency by market capitalization in recent years.
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