5 reasons for Ethereum $10,000 rally is on the horizon, says Lark Davis
Top analyst Lark Davis unveils 5 compelling reasons regarding fundamental factors for Ethereum’s inevitable rally to $10,000.
Firstly, the trader points out that there is not a lot of price resistance ahead for Ethereum (ETH) at the moment. In particular, more than 10 million Ethereum has been bought between $3,426 and $3,536.
“This is a very significant supply wall for support, but also it is critical to note there is very little supply bought above this level to be dumped when the price starts running to future resistance levels,”
Secondly, Davis points out that Ethereum is in a supply crisis in which ETH supply on exchanges just keeps dropping while the price just keeps rising.
“$10,000 is programmed in already.”
Importantly, Arbitrum, layer-2 scaling solution for Ethereum, is taking off which has reached a milestone of $3.4 billion in TVL.
“$3.4 billion in TVL in Arbitrum shows that people are adopting layer 2 ethereum which is very good for ethereum because again the native asset of Arbitrum is not some random token, it’s ETH,”
The fourth reason for Davis’s optimism in the $10,000 road is due to the ETH soars in staking. In particular, there is 7.682 million ETH currently locked in the ETH 2.0 staking contract.
“That number obviously is going up all of the time as more and more people are staking their ETH, chasing after those sweet Ethereum staking rewards,”
Last but not least, ETH is beating the market with the increased interest of institutional money in which ETH is majorly outperforming major funds and Bitcoin.