Here’s why $15,000 isn’t really ‘far-fetched’ for Ethereum

Ethereum

Any avid crypto-Twitter user would be quite familiar with the “ETH at $ 10,000», We talk lately. Right from analysts and educators to traders and investors, a host of community members strongly believe that the largest altcoin would be able to achieve the aforementioned target in the foreseeable future.

Options traders, on the other hand, have higher expectations. A majority of them are eagerly awaiting a target price of $ 15,000. At the time of writing, there were over 8218 DBT contract holders expecting ETH’s price to cross the aforementioned threshold by the end of March.

Consider this – less than a day ago the number of DBT contracts with the same strike price of $ 15,000 was 6834. The rapid rise in the number of traders getting onto the $15k bandwagon is a testament to their long-term bullish sentiment.

So the biggest unanswered question is whether or not Ethereum would live up to the expectations of these participants.

Impossible It’s possible

The price of Ethereum has increased exponentially on several occasions in the recent past and, indeed, it has managed to surprise people in space. However, the largest alt has seldom stuck to a straightforward price movement pattern in the period between October to March.

From October 20, 2020 to March 25, 2021, for example, the price of Ehereum appreciated by almost 344%.

However, in the same 5 month period in 2019-20 and 2018-19, Ethereum’s price reacted differently. Regarding the first case, ETH started off on a stagnant note, but recovered rather well during the January-February period.

March, nevertheless, proved to be disastrous and by the 25th, the alt’s price was down by 25% when compared to 20 October 2019’s level. During the 2018-19 period, Ethereum hit more lows. low until mid-December, accelerated a bit after that, but again continued on its downward trajectory.

On 25 March 2019, ETH’s price was down by 37% relative to the previous year’s October period.

Well, the market has moved on since 2018 and obviously it’s not fair to compare the current scenario with that of a few years ago. The whole Ethereum 2.0 factor – including the staking and burning mechanisms, in conjunction, have aided Ethereum to improve its tokenomics.

The total value put on Ethereum, for example, has only grown day by day. The same stood at its 7.98 million ETH at the time of writing.

Further, since EIP-1559’s launch, more than 578,956 ETH tokens worth approximately $2.22 billion have been burned. Removing tokens from circulation supply by burning and staking has the potential to cause a “supply crisis”. This is because the price of the token is bound to be pushed north over time.

Thus, by March 2022, the amount of staked tokens and burned tokens would be even higher and one can expect the alt’s positive price action to take proper shape by that time.

In addition, Etheruem now benefits from the support of institutions. If additional capital continues flowing into ETH, then, its price would undoubtedly appreciate.

So, keeping the aforementioned factors in mind as well as the broader uptrend, it would be fair to argue that the $ 15,000 target is not as far-fetched as it sounds.

Having said that, it should also be noted that options traders can back off whenever they feel that the market’s pendulum might swing the other way round. Therefore, while the odds of hitting the target appear to be high at this time, there is no 100% guarantee that the price of the alt would eventually exceed the aforementioned 5-digit valuation of here the end of next year.

At the end of the day, uncertainty is the only certainty in the crypto-sphere.

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