Any crypto-loving Twitter user is familiar with the recent debates about “Ether at $ 10,000″. From analysts and educators to traders and investors, many community members firmly believe that Ether can achieve the aforementioned goal in the near future.
Options traders, on the other hand, have higher expectations. Most of them expect a target price of $ 15,000. At the time of writing, over 8,218 DBT contract holders expected the price of Ether to exceed $ 15,000 by the end of March 2022.
Consider the following – less than a day ago, the number of DBT contracts with the same strike price of $ 15,000 reached $ 6,834. The rapid increase in the number of traders participating in the $ 15,000 pull effect is evidence of their long-term bullish sentiment.
Hence, the bigger question that remains unanswered now is whether Ether can live up to attendees’ expectations.
The price of ether has risen exponentially recently and has surprised everyone in the room. However, Ether rarely adhered to a simple price action pattern between October and March.
For example, the price of ETher rose nearly 344% from October 20, 2020 to March 25, 2021.
However, in the same 5-month period 2019-2020 and 2018-2019, the Ether price reacted differently. Based on historical data, Ether started to stagnate but rebounded quite well between January and February.
However, March turned out to be disastrous, and on the 25th, the price of Ether fell 25% from its level on October 20, 2019. In 2018-2019, Ether hit lower lows for mid-December, then rose slightly, but continued on a downward trajectory.
On March 25, 2019, the price of Ether fell 37% compared to October 2018.
Well, the market has been growing steadily since 2018 and it is clearly unfair to compare the current scenario with the scenario from a few years ago. The entire element of Ethereum 2.0 – including the combined staking and burning mechanisms – has helped improve tokenomics.
For example, the total value of stakes on Ethereum is increasing day by day and at the time of writing it currently stands at 7.98 million ethers.
In addition, over 578,956 ethers, valued at approximately $ 2.22 billion, have been burned since EIP-1559 was launched. Removing tokens from the circulating supply by burning and staking them has the potential to reduce supply. In fact, its price will inevitably increase over time.
Therefore, in March 2022, the amount of staked and burned ether will be even higher and people can expect positive price movements until then.
Etheruem now also has institutional support. If additional capital continues to flow into ether, its price will inevitably rise.
So, from the above factors and the more general bullish bias, it can be said that Ether’s $ 15,000 target is not too far off.
However, it is also important to note that options traders can pull back if they feel that the market’s pendulum may swing in the opposite direction. Therefore, while the likelihood of achieving the above goal seems high at the moment, there is no 100% guarantee that Ether can be achieved by the end of next year.
Ultimately, uncertainty is the only certainty in the cryptosphere.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AMBCrypto