Categories: Ethereum

Ether’s “programmed” price of $ 5,000 will soon come true

Experts say the $ 5,000 price for ETH has been “programmed” since 2018, and some have even gone so far as to predict a price of $ 20,000 in the long term.

“5,000 US dollars for programmed ETH”.

Part of the reason for the words Demand price increase This is based on ETH 2.0 staking and deflation due to EIP-1559.

“At this point in 2017, Bitcoin is around $ 2,000. Just 7 months later, it’s nearly $ 20,000. What do you think will happen if the world wakes up in less than 2 months to the APR (annual percentage) and the deflationary aspect of the introduction of ETH? I think $ 20,000 is programmed. “

The estimate of $ 20,000 equates to a market cap of $ 2,360 billion, and even if it were doable, it still looks too optimistic right now.

Ether has been entering an ascending channel since September 20th, which means $ 5,000 will become support by the end of November.

Ether price chart | Source: TradingView

The latest strength has been aided by the growth in Adjusted Net Worth (TVL) in the Ethereum network’s smart contracts. TVL measures assets deposited on dApps and is typically guided by credit logs and DEX exchanges.

Total value locked in the Ethereum network | Source: DeBank.com

Ethers TVL broke its all-time high (ATH) of $ 71 billion on October 16, up 50% in the three months ended October 31.

Negative regulatory headwinds from US lawmakers could deter investors from cryptocurrencies. Many US states, including Kentucky, Texas, Alabama, Vermont, New Jersey, and most recently New York, have started restricting crypto lending.

In addition, the New York-based decentralized forecasting market Polymarket was examined by the US Commodity Futures Trading Commission (CFTC) in October. follow report From Bloomberg on October 23, the agency is looking into whether DeFi will allow its clients to trade binary options and swaps without the required regulatory approval.

On the other hand, some investors expect that the positive development of the traditional markets will continue to drive the upward momentum. The data shows that November was the best month for the S&P 500 since 1985.

Professional traders believe that the price of ether will go up

To confirm investor confidence in the $ 5,000 prophecy, people should keep an eye on the monthly premium of the contract known as the “base”. In contrast to perpetual futures, these fixed-term futures contracts do not have a financing rate, so their prices differ greatly from the regular spot exchanges.

By measuring the difference in cost between the futures contract and the regular spot market, a trader can gauge how optimistic the market is. If buyers are overly optimistic, the three-month futures contract will trade at an annual premium of 15% or more (base).

3 months term of the basic rate | Source: Laevitas.ch

Note that even the 9.5% correction from $ 4,300 to $ 3,900 in Ether on October 27th was not enough to break the morale of these traders. The base is currently 17%, which indicates a moderate upward trend.

The options market shows a moderate upward trend

Ether hit an ATH at $ 4,460 on October 29, and to see how bullish traders are we need to look at a 25% delta deviation. This indicator provides a reliable analysis of “fear and greed” by comparing similar call and put options.

The index becomes positive if the neutral to bearish put option premium is higher than that of calls with similar risk. This situation is often referred to as the “fear” scenario. On the other hand, a negative deviation means that protection costs will rise higher and indicate a bullish trend.

Ethers 60 day delta option 25% offset allocation | Source: laevitas.ch

The above chart shows the indicator at minus 9, approaching the “greedy” momentum area. This bullish stance started on October 18th, which is not a positive day for Ether as the USD 3,700 support has been tested multiple times.

Both indicators on the derivatives market are on the edge of the neutral to bullish range, which is to be interpreted as very positive, as it leaves the buyers room to leverage derivatives with the help of derivatives.

According to the futures and options numbers, the bulls’ call for $ 5,000 might be right in the short term.

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.

Teacher

According to Cointelegraph

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

1 hour ago

Bonk’s ICO Was Just the Start: Why BTFD Coin’s Stage 7 Price Rollback Is Your Second Shot at Crypto Glory

BTFD Coin is offering a chance to relive the glory days of meme coin investing,…

2 hours ago

Decoding BDAG’s AMA: A Blueprint for Scalable Blockchain and Enhanced Community Ties

Explore key takeaways from BlockDAG’s AMA, showcasing strides in scalability, growth of the ecosystem, and…

2 hours ago

Best Cryptos with 1000X Potential: Qubetics Revolutionises Blockchain as Polkadot and Cosmos Shape the Future

Discover why Qubetics, Polkadot, and Cosmos are the best cryptos with 1000X potential, offering innovation,…

6 hours ago

Best Coins to Buy in December 2024: Qubetics Offer 630% ROI, Polkadot Delivers on Interoperability and Near Protocol’s Scalability is Talk of the Town

Explore the best coins to buy in December 2024—Qubetics with its thrilling presale, Polkadot’s interoperability,…

12 hours ago

Crypto Market Outlook 2025 Key Factors to Watch

The Crypto Market Outlook 2025 highlights key areas: stablecoin growth, tokenization, crypto ETFs, DeFi innovation,…

15 hours ago

This website uses cookies.