Lark Davis, a popular crypto analyst, has released a new Ethereum price prediction video. The analyst, who is a YouTube where he talks and gives tips on cryptocurrencies to avoid or invest in, has a YouTube channel where he shares his predictions on crypto, and currently has over 430,000 subscribers.
Davis, in one of his latest videos; He made a prediction that Ethereum is on its way to surge 200% above $10,000. According to the analyst, there is not much price resistance in front of Ethereum at the moment.
According to Davis, around 10 million Ethereums were purchased at a level between $3,426 and $3,536. The amount of ETH purchased in this value range represents about 9% of the second largest cryptocurrency supply by market cap. Davis said that the buyers of these 10 million ETH are not after small gains, they are likely expecting a 5 to 10 fold increase. The analyst added that some of these investors are long-term investors, while others are investors who earn passive income by staking their ETH.
Lark Davis Explains Factors That Will Push Ethereum To The $10,000 Level
In addition, the analyst also talked about the Ethereum supply crisis. Using a chart, Davis explained that the current supply of Ethereum on centralized exchanges has fallen since last year. On the other hand, the supply of ETH outside the exchanges continues to increase. This shows that people are moving their crypto assets from exchanges to different platforms such as smart contract platforms. With the growing interest in non-fungible tokens (NFTs), ETHs are withdrawn from exchanges and are also used to buy NFTs.
The downward trend in the current ETH on the central exchanges in the last twelve months was accompanied by the bullish signs of the Ethereum price in the same period. Davis on this topic “It is only a matter of time before the ethereum supply crisis raises the price drastically” commented.
At the time of writing, Ethereum (ETH) is trading at $3,060, according to data from CoinMarketCap.
Also, Davis talked about the Ethereum layer 2 solution, which requires users to have ETH to pay gas fees. In the video, the crypto supporter underlined that Arbitrum is the top system running on Ethereum layer 2, noting that this solution allows many people to use Ethereum without paying costly fees.
Also, 7,682 million ETH (worth $25 million) is currently locked in the ETH 2.0 staking contract. Davis believes investors will sustain profits from their stakes over the long term. According to Davis, who said that more people than ever before are starting to talk about ETH, the increase in exposure to the crypto asset could lead to an increase in the value of ETH.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.