Lark Davis: Ethereum (ETH) is ready for a 10K price level
Popular crypto analyst Lark Davis has yet again released his price prediction on Ethereum. Davis has a YouTube channel where he talks about all kinds of cryptocurrencies- the ones to avoid and the ones to invest in. The analyst currently has over 430 thousand subscribers on his YouTube channel, with whom he shares his crypto beliefs.
In one of his recent videos, Davis predicted that Ethereum is on its way to reaching over $10,000. He noted that there is currently not a lot of price resistance ahead for Ethereum. That is, there are not a lot of large quantities of the cryptocurrency up for sale as it increases in value.
According to Davis, about 10 million Ethereum was bought between $3,426 and $3,536. The amount of ETH purchased at the price range equals about 9 percent of the total supply of the second-largest crypto by market cap. Rather than expecting a 5 to 10 percent gain on their Ethereum holdings, Davis said buyers of the 10 million ETH are probably looking at a 5 to 10 X increase. He added that some are long-term investors, and some are staking their ETH while making passive income.
Lark Davis highlights factors to push Ethereum to a $10,000 price level
In addition, the analyst talked about the Ethereum supply crisis. Using a chart, Davis explained that the supply of available Ethereum on centralized exchanges has dropped over the past year. On the other hand, ETH supply outside exchanges has been continually rising. This shows that people are taking their crypto assets out of exchanges into different platforms like smart contracts. With the growing trend of non-fungible tokens (NFTs), a lot of ETH moves out of exchanges have been used to buy NFTs.
As there has been a downward trend in available ETH on centralized exchanges in the last twelve months, the price of Ethereum has been on the rise over the same period. Davis stated:
We’re getting of curse increasingly close to testing price discovery once again for Ethereum… with the supply mechanics working as they are, it’s only a matter of time before the Ethereum supply crisis end up jacking up the price in a serious way.
At the time of writing, ETH is trading at $3,093.
Furthermore, Davis mentioned the Ethereum layer 2 solution, which requires users to hold ETH to pay the gas fees. In the video, the crypto supporter noted that Arbitrum is the top system running on the Ethereum layer 2. Layer2 allows a lot of people to use Ethereum without having to pay costly fees.
Also, 7.682 million ETH (worth $25 million) is currently locked in ETH 2.0 staking contract. Davis is convinced that investors will continue to roll over the profits made from their staking. Speaking further, the crypto Youtuber said that more people are talking about ETH like never before. According to him, the increasing exposure to the crypto asset could cause a spike in its value.