Crypto trader and analyst Lark Davis in a recent video explained how he saw a big move in Ethereum prices from current levels of $ 3,400 to $ 10,000 in the coming days. He said,
“At this point, $ 10,000 is basically programmed into the matrix.”
He listed a few key factors that could play a role in the Ethereum rally.
A “crowd of big money” is interested
Davis introduced Ethereum as a major league that was gaining ground within the banking and institutional investment community. This means that, aside from retail investors, the big players have taken note of ETH for their crypto exposure. Davis pointed out,
âWhen you have people like Ark Invest selling Ethereum to the institutional money crowd, watch out! “
It was in the context of the SALT conference last week, when Ark Invest CEO Cathie Wood expressed confidence in Ethereum. Davis said the investment firm’s decision to assign a 3: 2 ratio for Bitcoin and Ethereum investments, respectively, was a major boost for the smart contract platform. He also pointed out that the ETH utility is “finally catching up” and can boost ETH to $ 10,000 and beyond.
He further compared the ETH performance to major funds and indices over the past month.
ETH outperformed with a double-digit rate Return against traditional market players like the S&P 500, the Nasdaq 100 and the Dow Jones. During the same period, ETH was also ahead of BTC. Davis also reflected on a strong correlation between the Nasdaq and ETH. He, therefore supposed, that ETH also has high potential and was a high risk investment.
Thinking about other techniques, Davis didn’t see a big dump in the price of ETH. Instead, he said he expected prices to rise due to Ethereum’s âsupply crisisâ. He felt that a large amount Ethereum exiting trading is a bullish sign, as it represents accumulation. Looking at the HODLer data, he said,
â87% of Ethereum’s supply has not been transferred to the chain for three months or more. 87% of the offer! This is madness.
He further explained that this was because investors were unwilling to sell below the previous record. The HODLers are also waiting for a new ATH. Additionally, he said the HODLers are also monitoring ETH locked in DeFi protocols, ETH 2.0 staking, and coin âburnâ. Over $ 1.1 billion worth of ETH has been burned.
According to the analyst, all of these factors represent a positive trend as protocols (DeFi) like Arbitrum and NFT have a huge amount of ETH locked down. And finally, he mentioned the “takeoff” of Layer 2 of Ethereum.