In a world of bullish expectations and optimistic forecasts, well-known trader and technical analysis expert Crypto Tony recently made a bold prediction on Ethereum ($ETH), one of the leading cryptocurrencies. In a tweet, Tony expressed his belief that the Ethereum coin is not far from reaching a valuation of $10,000.
“Ethereum hitting $10,000 is only a matter of time for me,” stated Crypto Tony in a tweet on Sunday. The respected analyst has been strategically adding Ethereum to his portfolio over an unspecified period and is confident in the coin’s potential.
Current state of Ethereum price action
ETH recently closed a daily cycle under a presumed critical zone (~1940) leading to a bearish breakout and a drop below the 1900 level. The next significant support is set at the 200EMA/1885 level, and we anticipate few tests at this point with the possibility of continuation to an average line (solid purple in the provided chart) based on the current/upcoming gap.
Should the price close below the highlighted average, it’s very likely the pattern support will be fully filled out.
ETH is now deflationary token
As per data discovered by the analyst, Ethereum has been deflationary for two consecutive months, primarily driven by a surge in on-chain activity on decentralized finance (DeFi) protocols like Uniswap and Blur.
The deflationary state means that the quantity of Ether entering circulation is less than the number being burned (or removed from existence), creating a net reduction in supply. This monumental change resulted from a network upgrade (EIP-1559) launched in August 2021. This update ensured transaction fees, known as ‘gas’, would be burned instead of being directed to the network’s miners, setting the stage for Ethereum’s transition to proof-of-stake last September.
EIP-1559 initially led to occasional production of deflationary blocks, where more ETH was burned than distributed. However, according to the network tracker ultrasound.money, Ethereum has consistently been deflationary every day since late January.
Whether Ethereum’s price will reach the much-anticipated $10,000 mark as Crypto Tony predicts is a question only time can answer. However, the shift towards a deflationary model and the increasing adoption of DeFi protocols may present a compelling argument in favor of such a milestone.
