Ethereum optimism remains… "10,000 dollars by year-end"

Crypto Now

Large-scale liquidations, weakened investor sentiment

'Big player' Bitmain adds 400 million dollars in additional purchases

Ethereum has fallen again after a recent large-scale liquidation event. However, analyses say the long-term bullish outlook remains. According to CoinMarketCap on the 19th, Ethereum is recently trading below 4,000 dollars. On the 10th, concerns about intensified U.S.-China trade tensions pushed it down to 3,750 dollars, but it recovered to the 4,200 dollar level and then gave back most of the gains. Earlier this month, a large-scale liquidation of 20 billion dollars occurred, which is believed to have dampened investor sentiment.

Optimism that Ethereum will recover an upward trend by year-end remains. Continued supply reductions are likely to lead to price increases. Asset manager Bitwise said, "95% of the Ethereum held by listed companies was purchased within the past three months," and predicted, "corporate and institutional accumulation of Ethereum will begin in earnest."

Staking (deposit) volumes are also steady. Staking is a method in which investors deposit coins to participate in network operations, and deposited amounts are not traded on the market for a certain period. According to CryptoQuant, about 36 million Ether are currently staked on the network. This is about 30% of the total supply.

During the downturn, institutions and whales (large investors) have continued buying at the lows. According to on-chain data platform Lookonchain, Bitmain Technologies additionally purchased about 400 million dollars' worth of Ethereum during this week's downturn. Large investors also bought 150,000 Ether over the past two days. The macroeconomic environment has also become more favorable, with the U.S. central bank (Fed) signaling interest rate cuts.

Accordingly, there is a possibility that Ethereum could surpass its all-time high (4,956 dollars) by year-end. Arthur Hayes, BitMEX co-founder, said, "Quantitative tightening is already over. Now is the time to buy crypto assets," and predicted, "Ethereum will reach 10,000 dollars by year-end." Benjamin Cowen, a crypto asset analyst, also said, "This correction is not a signal that the bullish phase has ended."