Ethereum: A Potential 3X Investment Opportunity According to Crypto Venture Capitalists
A prominent crypto venture capitalist has suggested that Ethereum [ETH] could potentially reach a cycle high of $10,000, despite trailing behind other major alternative cryptocurrencies and Bitcoin [BTC].
Simon Dedic, the co-founder and managing partner of Moonrock Capital, a crypto venture capital firm, believes that investing in ETH could lead to a ‘safest 3x’ return on investment at the current state of the market.
“Given the current market conditions, Ethereum (ETH) stands out as one of the simplest and most secure opportunities for achieving a 3x return on investment.”
With the current valuation, this would translate to around $10,000 per ETH. Many experts, including asset manager Bitwise, share a similar optimistic outlook on ETH, viewing it as a ‘contrarian bet’ investment by October 2024.
Can ETH’s Delayed Growth Be Seen as an Opportunity?
While Ethereum has experienced a slower growth rate compared to prominent players such as Solana [SOL] and BTC, it has shown steady progress following the recent US elections.
Despite this, the negative market sentiment has contributed to its sluggish performance, with the ETH/BTC ratio hitting new annual lows at 0.031.
Essentially, ETH has been underperforming in comparison to BTC, a trend that has persisted since 2022 post The Merge event.
This has resulted in investors showing more interest in BTC and other major cryptocurrencies over ETH, which has restrained its overall price advancement.
Nevertheless, there is potential for a turnaround for the leading altcoin. ETH has rebounded by over 40% since hitting its November low. It is currently making efforts to surpass the $3,300 barrier, aiming for higher levels of $3,600 and $4,000.
Another positive indicator, highlighted by CryptoQuant’s JA Maartunn, is the increase in Ethereum staking activities.
“In the last week, there was a net influx of +10,000 ETH deposits for staking, with 115,000 ETH deposited and 105,000 ETH withdrawn. The total staked ETH (represented by the blue line) is on the rise again, indicating a restored confidence in staking as a long-term strategy.”
This surge in staking activities, possibly driven by growing optimism about potential approvals for staking within US spot ETFs under the Trump administration, could lead to an ETH supply shortage, ultimately benefiting ETH prices.
A similar positive sentiment was observed among options traders on Deribit. Over the last 24 hours, significant traders have placed more bullish bets (indicated by orange lines) targeting price levels of $3,800, $4,000, $5,000, and $6,000 for ETH.
However, there is also preparation for a downside scenario, as evidenced by a slight increase in the purchasing of put options (indicating bearish bets with blue lines) targeting $3,000 and $2,800 for ETH.