In the ever-volatile world of cryptocurrencies, Ethereum (ETH) has captured the attention of investors and traders alike. Recently, a popular crypto analyst known as Kaleo has made an intriguing prediction about the future of Ethereum, suggesting that it could potentially surge by 50% to reach a price level last seen in May 2022. However, there's a catch: Kaleo also anticipates a temporary dip in price before the significant rally.
Kaleo, who boasts a substantial following of 586,700 Twitter followers, envisions Ethereum's price potentially reaching $2,400. This level was last witnessed before the collapse of the Terra (LUNA) ecosystem. However, he cautions that prior to the surge, Ethereum might experience a dip to around $1,600.
"This is still my best-case scenario play for ETH. Dip to $1,600s, then run it back up to approximately $2,400 to retest the pre-LUNA/UST liquidation breakdown level," Kaleo explains.
Interestingly, another prominent crypto strategist by the name of Bluntz shares a similar outlook on Ethereum. Bluntz suggests that Ethereum, currently the second-largest crypto asset by market capitalization, could find support in the $1,600 range and potentially end its ongoing corrective move.
"ETH is getting absolutely mauled right now. Not too sure where I would be looking for longs, probably somewhere between $1,600 – $1,700, and even then I would want to see a very significant reversal candle," states Bluntz.
The analysts' positive sentiment towards Ethereum coincides with a noteworthy trend reported by Santiment, a reputable analytics firm. Santiment reveals that the supply of Ethereum on crypto exchanges has reached an eight-year low. This decline in exchange supply indicates that more ETH is being held outside of exchanges, suggesting a potential increase in long-term investment strategies.
"As Ethereum has dipped to $1,780 today, we've seen exchange supply continue to decrease. The percentage of ETH on exchanges is at its lowest (10.1%) since public trading began in 2015. This is essentially the all-time high for non-exchange holdings," explains Santiment.
This decrease in exchange supply implies that investors are increasingly holding Ethereum in personal wallets and staking platforms rather than keeping it readily available for trading on exchanges. Such behavior suggests a growing confidence in the long-term prospects of Ethereum and a reduced inclination to engage in short-term speculative trading.
Furthermore, the decreasing supply of Ethereum on exchanges may also contribute to increased price volatility. With fewer tokens available for immediate purchase, any surge in demand could potentially lead to a supply crunch, triggering a rapid increase in price.
It is worth noting that while the predictions of Kaleo and Bluntz are intriguing, the cryptocurrency market is notoriously unpredictable. Crypto assets are subject to various factors, including market sentiment, regulatory developments, technological advancements, and global economic conditions. As a result, any forecast should be taken with caution, as unexpected events can easily disrupt the anticipated trajectory of a cryptocurrency.
Investors and traders interested in Ethereum should conduct thorough research, analyze various indicators and market trends, and consider their risk tolerance before making any investment decisions. Consulting with a qualified financial advisor who specializes in cryptocurrencies can also provide valuable insights and guidance.
In conclusion, Ethereum's potential to surge by 50% in a best-case scenario, as predicted by prominent crypto analysts Kaleo and Bluntz, has generated significant interest among market participants. The decreasing supply of Ethereum on crypto exchanges further adds to the speculation surrounding its future price movements.