The crypto market is reaching new heights and Ethereum (ETH) has stolen the spotlight in the latest rally. Breaking past the $3,000 barrier in the last week, ETH has been long-anticipated by crypto investors to catch-up with a rally and show gigantic movements.
At the time of writing, ETH was trading near $2,969, up 15.8% in the past seven days. Its daily trading volume has seen a drastic rise throughout this week, coinciding with Bitcoin’s new all-time high. However, ETH has pulled back 3% in the past 24 hours, signaling profit taking on Monday ahead of a long-volatile week.
Analyst Predicts ETH Price Soaring to $10,000
Speculating on the current price trajectory of Ethereum (ETH), market analyst and Founder of MJ Capital, Eric Jackson predicts that ETH price will be reaching $10,000, and its next leg up will catch everyone off guard.
Eric believes that the approval of Ethereum ETFs are still not priced as it is awaiting the approval of Staking ETFs, which will further solidify ETH’s position in traditional finance markets. “The real catalyst is still ahead: staking approval, expected before October,” Eric said, “Once that hits, ETH becomes the first yield-bearing crypto ETF in U.S. history.”
The staking Ethereum ETF will enable investors to earn passive yields and essentially increase the asset’s market demand. As ETH issuance has also turned negative in post-Merge timeline and existence of spot ETH ETF has increased its demand, it would likely lead to a structural supply crunch for the cryptocurrency.
“Our analysis suggests the ETH network is underpriced. It generates real revenue,” Eric Added, “And once ETH becomes a productive, staked asset within an ETF wrapper, It’s no longer just digital oil, It’s an institutional-grade yield product.”
ETH Supply Crunch Incoming?
Ethereum’s current market supply stands at 120.71 million, which has maintained a steady pace of supply-burn ratio after the implication of the Merge upgrade in September 2022. This balanced supply and increase in ETH demand are the key basis on what Eric predicts an incoming supply shock.
While unsure, the increasing attention on Ethereum–as an institutional grade asset–would likely impact heavily on its market price. Predictions such as $10,000 per ETH may currently look ridiculous, but given the “supply shock” scenario, the target seems reasonable.
Also read: Bitcoin Pulls Back Below $117K As Profit Taking Hits
