Cryptocurrency News

Strategist Predicts $10,500 Price Target for Ethereum

By January 27, 2021 No Comments

Key highlights:

  • Ethereum is distributed and decentralized, and its distinctive feature is the capacity for smart contracts.
  • According to Fundstrat, a price target of $10,500 is possible for Ethereum due to more development in the space

Ethereum is one of the popular choices among crypto enthusiasts, and many users and analysts are bullish about the future of its native asset ETH. These days, Ethereum price predictions are a hot topic, and many analysts are sharing the thoughts of what the ETH markets will look like in the future. Some of these analyses are backed with plenty of research, while others take a more speculative approach.

What is Ethereum?

Ethereum is a decentralized blockchain platform that supports smart contracts. The smart contracts language used by Ethereum is called Solidity, and it allows users to create complex apps that run on the Ethereum blockchain. 

The Ethereum project was first started by Vitalik Buterin in 2013. He was joined by other co-founders like Charles Hoskinson and Gavin Wood, and the Ethereum project held an ICO in 2014 in which they raised around $16 million. The Ethereum mainnet started its operations in July 2015. While Ethereum did start with a pre-mine there wasn`t anything like a vesting schedule for the pre-mined ETH coins.  

Many landmarks and milestones occurred for Ethereum in the past years, and one of the most notable developments was the launch of the Ethereum 2.0 beacon chain on December 1, 2020.  

ETH is currently moving away from Proof-of-Work (mining), and is making a transition to Proof-of-Stake. The new version of Ethereum 2.0, also called Serenity, will also implement advanced scaling technologies such as sharding. When the new Ethereum 2.0 platform is ready, it will be able to process thousands of transactions per second while having a much lower environmental footprint.

Fundstrat thinks ETH is about to explode

We all remember the extraordinary movement of Bitcoin in January this year. Bitcoin touched new all-time highs, and now many analysts expect that for ETH as well. Fundstrat Global Advisors is a strategy firm that predicted a target of $10,500 for ETH. The firm has good reasons for this prediction, including more use cases, stablecoins, and the emergence of DeFi emergence on the Ethereum blockchain. According to Fundstrat strategist David Grider, ETH has the best risk/reward ratio in the crypto space. 

Fundstrat believes ETH can earn more through fees this year because there are more players on its blockchain right now, and this could push Ethereum to higher prices. Ethereum users already paid $180 million in fees in just 17 days at the beginning of 2021, and it is a bullish signal for massive growth in 2021.