On Friday (January 15), popular New Zealand-based cryptocurrency analyst Lark Davis (@TheCryptoLark on Twitter) talked about the top four positive catalysts that could push Ethereum's price to $ 2,000 before the end of February.
According to data from TradingView, currently (at 08:36 UTC on Jan 17), on Bitstamp, the price of Ethereum (ETH) is trading around $ 1,190.
However, in a video posted to his YouTube channel on Friday (January 15), Davis gave reason to believe that the price of ETH could climb as high as $ 2,000 before the end of next month.
Davis began by saying that "although price and theory are lagging behind Bitcoin, interest in Ethereum has never been higher according to Google Trends."
He then proceeded to mention the main catalysts that could drive the Ethereum price higher:
“Ethereum is currently undergoing the most significant update in its history. The first phase of that update is already underway. In fact, there are now 2.5 million Ethereum locked in the ETH 2.0 deposit participation contract. Now this number is continually growing, and for every 32 Ethereum crashing on the one-way journey to ETH 2.0, that's actually 32 Ethereum less available on open markets, we can now start to look forward to the next major phase of Ethereum 2.0: phase 1, by the way, phase one, in case you don't know, will bring network fragmentation ”.
“This is the enhancement protocol that aims to change Ethereum's fee model for transactions by introducing a base fee to pay for each transaction. That helps protect the network from spam, so it will reduce network congestion, but also, I think more importantly, part of this Ethereum update is that it will introduce rate burning, so we're actually going to get started. to see an incredible amount of Ethereum burning.
Every day on every transaction they will start burning Ethereum when they implement this improvement proposal, potentially even turning Ethereum into a deflationary cryptocurrency that would be totally awesome for long-term price appreciation. Now that becomes almost a certainty with Ethereum 2.0 phase 1.5 ″.
Layer 2 scale solutions
“The most important deal, right now, probably in terms of the new technology layer 2 will probably be the Optimistic Rollups. This will allow major DeFi apps, all of our DeFi favorites like Aave and Synthetix, to slash fees by implementing optimistic technology in their apps. Now Synthetix will probably be the first major Ethereum DApp to achieve this, that's going to be a game changer for these apps because you'll be able to use them without paying, you know, crazy prices. I've been paying gas fees recently with Ethereum. ”
“Increasingly, we see that large amounts of money are realizing what Ethereum is, the power of technology, the value proposition of technology and although many institutions still hesitate to go out and buy Bitcoin, the smartest ones, more nimble hedge funds and big money lads are buying Ethereum, and to top it off, we have live CME Ethereum futures in early February. This will again give large amounts of money a way to expose themselves to the Ethereum price action. "
(embed) https://www.youtube.com/watch?v=8Ei9ts6Q0tM (/ embed)
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.