Expert identifies factors driving Ethereum toward $10,000

Rebalancing investment portfolios toward altcoins and a positive news backdrop have been the main drivers of Ethereum to a new all-time high of $3500, according to Yuri Mazur, head of data analysis at CEX.IO Broker.

“In the medium term, the potential for Ethereum to rise from the current $3500 to $10,000 appears a more likely scenario than Bitcoin, which would need to reach $160,000 in the same time horizon. And the entry price for Ethereum positions looks considerably more comfortable,” the analyst says.

Bullish sentiment is also aided by a large amount of news about the Ethereum network, including the upcoming Uniswap launch, the Berlin hard fork that has taken place and the July London upgrade planned.

“Last year the price of Ethereum faced strong resistance from sellers due to high transaction fees. The current news backdrop indicates a technical adaptation of the network in response to increased load, particularly due to DeFi, and a tendency toward lower fees,” Mazur noted.

He also recalled that Ethereum became the second cryptocurrency, traded on the Chicago Mercantile Exchange. This status gives large institutional investors the ability to regard the coin as a full-fledged analogue to Bitcoin.

The price of the leading cryptocurrency has found equilibrium in a wide range of $50,000-$60,000 and for now investors are not prepared to pay more for digital gold because of cheaper and no less promising analogues, Mazur believes. Also, according to him, Tesla’s announcement of a 10% reduction in its Bitcoin investment position affected the coin’s price for liquidity testing:

“Market participants have received a signal from Elon Musk that Bitcoin’s rise may be temporary, and in the long run one should not expect the same pace of movement.”

The current corrective movement of the first cryptocurrency, Mazur regards as “drift within an established range”.

“The rise of altcoins could also positively affect Bitcoin, with the difference that the uptrend for it would be smoother and more modest,” the expert concluded.

Earlier, Arcane Research analysts expressed confidence that the altcoin season is already in full swing and named the probable reasons for Ethereum’s rise.

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