Arthur Hayes, Africa’s youngest crypto billionaire in America and former CEO and co-founder of derivatives platform BitMEX, expect The price of Ethereum could reach $10,000 by the end of 2022. It should be noted that Hayes once speculated about a downtrend in the price of Ethereum in a blog post in April turned out to be true.
He further urged that the Fed’s aggressive policies and rate hikes had the main role behind Terra’s collapse as it was a byproduct of the macroeconomic environment. Hayes says the crypto market is bottoming out or likely to touch grounds, after which it will bounce, assuring that Ethereum still has the potential to hit $10,000 by the end of the year or the beginning of 2023.
The former CEO predicted in an April post that the price of Ethereum would depreciate by June passed in May and even ETH fell below $1,700 on two cryptocurrency exchanges.
The developer’s choice and extensive use of smart contracts to implement, Ethereum ranks second in the rankings, and is currently trading at around $1,770. ETH investors saw an all-time high (ATH) for the coin by November 2021 when it touched $4,870. Now it’s been six months since the token’s value experienced a dip.
Will the price of Ethereum go up next year?
The analyst anticipating more market volatility in the medium term said he would like to buy Bitcoin at $20,000 and Ethereum at $1,300. This number drops more than 70% of the price of Ethereum from its ATH. Remarkably, investors lost more than 60% of those who bought the top of Ethereum.
Indeed, the expected drop will destroy the interest of investors who invested when ETH was hovering above but Hayes believes that the coin has a bright future ahead. In fact, time will tell better whether it will materialize given a massive meltdown.
Hayes’ statement of buying Ethereum at $1,300 certainly expresses what it is. Ethereum price can witness rapid price movements when the value drops below the support level. It indicates the possibility of further declines in value, causing weak investors to leave. Then the massive investment will come to form a floor below the support level which will make the bulls run again.
Although it does show the possibility of a price reversal, wouldn’t Hayes’ prediction of $10,000 seem unusual?
Bitcoin crashed 80% before a new ATH was created. This has happened several times in the cryptocurrency market over the past few years. Most likely, Ethereum could claim the expected price of $10,000 in 2023 or 2024 if it takes longer for the next bull run.
Related reading | Bored Monkey Yacht Club Drops 60% Last Month
Cryptocurrency traders who believed in Arthur’s convictions and invested in the token at that time would receive a ROI of over 500% if the market followed the bullish cycle by ending the year with ETH demanding a target price of $10,000.
Featured image from Pixabay and chart from TradingView.com