Scott Melker, a renowned cryptocurrency trader and podcaster, has predicted that Ethereum (ETH) could reach $12,000 by 2025. This optimistic forecast is supported by Lark Davis, another crypto influencer, who also expects a significant rise in Ethereum's price, though he predicts a slightly lower target of $10,000 without specifying a timeframe. Davis outlines several reasons for a potential surge in the crypto market in 2024, including the growth of stock markets, the likely approval of Bitcoin ETFs, legal victories for crypto firms against the SEC, the upcoming Bitcoin halving, the rise of Web3 gaming, and possible interest rate cuts by the U.S. Federal Reserve. These factors contribute to a bullish outlook for Ethereum and the broader cryptocurrency market.
In related news, an Ethereum whale is facing a potential liquidation risk after purchasing 25,674 ETH through MakerDAO, a decentralized lending platform. The whale initially spent 61 million DAI to buy the ETH and later sold 5,851 ETH for 14 million DAI, making a profit of $99,000. However, if the price of Ethereum drops below $2,257, the whale could face liquidation, as their collateral would be insufficient to cover the debt. Ethereum's price has been declining, recently trading around $2,280, close to the critical liquidation threshold. This situation highlights the high risks associated with large-scale cryptocurrency transactions and the volatile nature of the crypto market.
Ethereum (ETH) at $12,000 Expected by Top Trader in 2025
In a recent development that has stirred the cryptocurrency community, Scott Melker, a prominent cryptocurrency trader, author, and podcaster, has made a bold prediction about the future of Ethereum. On X, Melker forecasted that Ethereum, the second-largest cryptocurrency by market capitalization, could reach an ambitious price of $12,000 per coin by 2025.
This optimistic projection comes at a time when the crypto market is witnessing a surge in interest and investment. Melker's prediction aligns with the growing sentiment that Ethereum, known for its versatile blockchain technology, could experience significant growth in the coming years.
Lark Davis's Bullish Stance on Ethereum
Adding to the positive outlook, Lark Davis, a well-known cryptocurrency YouTuber, also expressed a bullish stance on Ethereum. Davis predicted that Ethereum could hit $10,000, although he did not specify a timeline for this target. His confidence in the cryptocurrency market is backed by ten specific reasons he believes will catalyze a market surge in 2024.
Reasons for a Crypto Market Surge in 2024
Davis outlined key factors that could contribute to a booming cryptocurrency market in 2024:
Stock Market Growth: The current parabolic trajectory of stock markets, with major indexes showing significant growth, suggests that investors might have additional capital to invest in cryptocurrencies.
Bitcoin ETF Approvals: The potential approval of Bitcoin ETFs by the SEC, expected in the first quarter of 2024, could bring more legitimacy and investment into the crypto space.
- Coinbase's Legal Victory: The anticipated victory of Coinbase over the SEC in court could signify a major setback for the regulator and a win for the crypto industry.
- Previous SEC Defeats: The SEC's recent losses in court against Grayscale and Ripple Labs, along with the dropping of cases against Ripple executives, indicate a weakening stance against crypto entities.
- Bitcoin's Fourth Halving: Scheduled for April 2024, this event historically has had a positive impact on Bitcoin's price, which indirectly benefits the broader crypto market.
- Web3 Gaming: The emergence of Web3 games utilizing cryptocurrencies as in-game currencies is expected to drive further adoption and integration of digital assets.
- Interest Rate Cuts: The U.S. Federal Reserve's consideration of reducing interest rates could make cryptocurrencies an attractive investment option.
Implications of Ethereum's Potential Growth
If Ethereum reaches the predicted price levels, it would mark a significant milestone for the cryptocurrency, underscoring its growing importance in the digital asset space. Ethereum's blockchain technology, known for enabling smart contracts and decentralized applications, continues to be a cornerstone of the crypto ecosystem.
The predictions by Melker and Davis reflect a broader optimism in the cryptocurrency market, driven by technological advancements, regulatory clarity, and increasing mainstream adoption. As the market evolves, Ethereum's role as a leading digital asset is expected to strengthen, potentially leading to the high valuation projected by these crypto analysts.
As the crypto community watches these developments unfold, the anticipation for Ethereum's growth trajectory in the coming years remains high, with investors and enthusiasts closely monitoring market trends and technological advancements within the Ethereum ecosystem.
Ethereum Whale Faces Liquidation Risk After Major Purchase
An Ethereum whale has recently come into the spotlight for making a substantial purchase of 25,674 ETH, a move that could potentially lead to a significant financial risk. This development, reported by Lookonchain, highlights the volatile nature of the cryptocurrency market and the high stakes involved in large-scale crypto transactions.
The Purchase and Potential Liquidation
The Ethereum whale, whose identity remains undisclosed, acquired the ETH through MakerDAO, a decentralized lending platform. This platform allows users to mint stablecoins, specifically DAI, by using their crypto assets as collateral. The whale reportedly spent 61 million DAI to buy the 25,674 ETH. Following this, they sold a portion of their holdings - 5,851 ETH - for 14 million DAI, netting a profit of $99,000.
However, this strategy is not without its risks. The primary concern for the whale is the potential for liquidation. If the price of Ethereum falls below a certain threshold, the collateral provided by the whale would be insufficient to cover their debt. In such a scenario, MakerDAO would automatically liquidate the ETH to recover the DAI.
According to Lookonchain, the critical price point for Ethereum is $2,257. If ETH falls below this value, the whale could face liquidation. This scenario is not far-fetched, considering the recent price trends of Ethereum. The cryptocurrency has been experiencing a decline, with a 3.56% drop in the last 24 hours, trading at around $2,280.
Ethereum's Price Movement and Market Impact
Ethereum's price has been on a downward trajectory since reaching a high of $2,448 on Dec. 28, 2023. The price dipped to intraday lows of $2,255 on Dec. 29, and although it has slightly recovered, it remains close to the critical threshold that could trigger the whale's liquidation.
The fate of this Ethereum whale is now closely tied to the performance of ETH and the broader crypto market. The market is currently in a state of flux, with investors booking profits towards the end of 2023, leading to a general decline in cryptocurrency prices.
This situation serves as a stark reminder of the risks associated with large-scale investments in the volatile cryptocurrency market. While the potential for high returns exists, so does the risk of significant losses, especially when leveraging large amounts of capital. Investors and market observers will be watching closely to see how the situation unfolds and what it might mean for the future movements of Ethereum's price.
Price Overview
Daily chart for ETH/USDT (Source: TradingView)
ETH posted a 24-hour gain of 0.43%, according to TradingView. As a result, the largest altcoin in terms of market cap was trading hands at $2,364.38 at press time. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators suggested that ETH would continue to rise in the next few days.
The MACD line crossed above the MACD Signal line over the past 24 hours. This is a significant bullish technical flag that suggests a continuation of ETH’s short-term positive trend. In addition to this, the RSI was positioned above its Simple Moving Average (SMA), which signals that buyers are currently stronger than sellers.
