Fundstrat Raises Ethereum Price Target to $10,500; Calls It “The Best Risk/Reward Investment Play In Crypto”
The second-largest cryptocurrency could surge more than 700% from its current level to $10,500, according to Fundstrat Global Advisors LLC.
The prediction is made by digital asset strategist of Fundstrat, David Grider, who wrote, Ether is “the best risk/reward investment play in crypto.” “Blockchain computing may be the future of the cloud,” added Grider, who sees setbacks in the Ethereum 2.0 network upgrade or a crypto bear market as the risks.
The first phase of ETH 2.0, the Beacon Chain, already has 2.57 million ETH locked in its deposit contract. Calling the launch “a resounding success,” developer Danny Ryan says, thus far, it has proved to be “stable and robust.” Ryan in a blog post on Wednesday wrote,
“The successful launch of the beacon chain was a huge milestone for engineers, stakers, and the community at large. We now have the foundation for Ethereum’s sustainable future. Although there are many moving pieces and innumerable winding threads, across the board, the Ethereum community has shown its unbelievable resilience and ability to deliver.”
Besides the network upgrade, Grider’s prediction is also based on the popularity of decentralized finance (DeFi), a growing sector that has over $23 billion in total value locked (TVL).
This moon target came a day after Ether hit its all-time high at $1,440 before seeing a decline today in tandem with Bitcoin. Eth’s new high came with an “overheated” derivatives market seen in the recent high funding rate.
Eth’s more than fivefold gains last year beats Bitcoin’s uptrend, which quadrupled in 2020. The crypto market expects ETH to outperform Bitcoin yet again, as it did during the 2017 bull cycle as well.
Crypto derivatives platform Deribit actually added ETH options contracts with a strike price of $10k in the first week of January 2021. On Tuesday, Deribit added another ETH options contract at a strike price of $20,000 with the December expiry.
On Feb. 8, the regulated platform, CME, will also launch the Ethereum futures contract, which is further expected to bring in institutional investors by legitimizing the cryptocurrency for institutions to make it part of their investment portfolio.