Cryptocurrency trader and famous youtuber Lark Davis believes Ethereum (ETH) is poised to rally 190% to five-digit values.
In a new video, Davis revealed that the second-largest crypto asset by market cap is poised to climb to $ 10,000, driven by key fundamentals.
Davis believes that one of the reasons the price of Ethereum should more than double is the decline in the number of altcoins on exchanges.
This figure has been in a strong downtrend over the past year, he said, as holders either lock their Ethereum into Decentralized Finance (DeFi) protocols or use them to buy non-fungible tokens (NFT).
The supply mechanisms have not been canceled, so sooner or later the Ethereum supply crisis will lead to a serious increase in prices.
Davis also cited tweet analytic blockchain platform IntoTheBlock, which states that recently the net amount of Ethereum withdrawn from crypto exchanges has reached a new all-time high.
Ethereum’s net worth leaving exchanges has just hit a new record. More than $ 1.2 billion worth of Ethereum left centralized exchanges yesterday. This is a mind-boggling figure.
The analyst added that when Ethereum, worth more than a billion dollars earlier, left the centralized exchanges, the price of the first altcoin showed double-digit growth within about four weeks.
As IntoTheBlock points out, the last time a billion dollars or more in Ethereum left centralized exchanges, ETH was up 60% within 30 days.
Davis also cited research from analyst firm Glassnode, which shows that a significant portion of the Ethereum supply has not moved in the past 90 days.
87% of Ethereum emissions have not been transferred online for three months or more. 87% off the offer! This is madness.
According to the crypto trader, this is a sign that Ethereum holders are waiting for higher prices, supported by the burning of Ethereum transaction fees.
People expect higher prices and do not sell below the previous all-time high. They know a new all-time high is approaching. They know a price discovery is coming. They are watching what is happening with the Ethereum economy … So far, 309,500 Ethers worth $ 1.1 billion have been burned.
The proliferation of scaling solutions known as Layer 2 protocols is also benefiting the second largest crypto asset, driving up demand.
We are also seeing the rise of the second level of Ethereum. To use Ethereum Tier-2, you must have Ethereum. Simply and easily. You must have ETH to pay for Ethereum tier 2 gas.
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I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.