Cryptocurrency trader and analyst Lark Davis believes that the rate of the second cryptocurrency will reach $ 10,000 in the coming weeks.
The analyst notes that large investors, banks and corporations continue to invest in the Ethereum ecosystem. Many institutional investors are starting to diversify their portfolios and are considering investing not only in bitcoin, but also in ether.
“There are companies like Ark Invest that are promoting Ethereum investments to their institutional clients,” Davis said in his video.
Ark Investment Management CEO Catherine Wood recently expressed strong confidence in the growth of ETH. According to her, the company will transfer part of the funds from bitcoin to ether so that the ratio reaches 60:40.
Another factor in favor of the growth of ETH, Davis called the limited supply of ether on the market. Now the reserves of the second cryptocurrency in the wallets of cryptocurrency exchanges are at an all-time low. This indicates the reluctance of investors to sell their savings in ETH.
“87% of coins have not moved for more than three months. 87 percent! This is crazy! ”- said the analyst.
Additionally, a significant ETH deficit is creating a burning of base transaction fees, as well as an increase in deposits in Ethereum 2.0 staking.
In early September, analysts from the British bank Standard Chartered spoke about a possible tenfold increase in ETH. At the time of publication, however, the cryptocurrency market is declining and the coin is trading at around $ 3,000, which puts ETH slightly away from reaching five-digit prices.