Ethereum could eightfold from current levels to $10,500. Such an optimistic view is held by Fundstrat Global Advisors strategist David Grider, Bloomberg reports.
Grider justifies his forecast by the popularity of DeFi applications built primarily on the Ethereum blockchain. The analyst also took into account substantial progress in the transition to the second version of the protocol. It is assumed that ETH2 will have throughput at the level of Visa and Mastercard and higher.
Weekly dynamics of Ethereum price changes. Data: Bloomberg.
“Ethereum offers the best risk/return trade-off in the cryptocurrency market. Computations on the blockchain could replace their current cloud counterparts,” the strategist writes in a note.
Among the investment risks Grider cites the difficulties of transitioning to ETH2 and the emergence of a bear phase in the cryptocurrency market.
On Tuesday, January 19, the second-largest cryptocurrency by market capitalization surpassed the level of $1400, setting a new all-time high.
As of writing, Ethereum trades at around $1,313, according to CoinGecko. In the last 24 hours the asset fell 4.2% after another failed attempt to break above $1,400.
Earlier, a venture investor at Variant Spencer Nunn provided 11 metrics that could indicate prerequisites for Ethereum to reach new highs.
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