Originally published on: December 11, 2024
Derive, an onchain options protocol, has revealed that Ethereum has less than a 10% chance of reaching the coveted $5,000 mark by the end of this year. Despite a surge in spot Ether exchange-traded funds (ETFs), indicating a potential “supply-side crisis,” the probability of Ether hitting $5,000 by Dec. 27 has dwindled to just over 8%.
According to Sean Dawson, Head of Research at Derive, the chances of Ether reaching $5,000 have dropped by about 50%, needing a notable 37% jump from its current price of $3,669 to achieve the milestone.
Although calls and puts for ETH trading are evenly split, suggesting a neutral market sentiment, some analysts like CoinMamba remain optimistic, setting a target of $5,000 by year-end.
On the flip side, Ethereum contributor Eric Conner highlighted the $305 million in Ether ETF daily inflows on Dec. 10, signaling a potential supply shortage on the horizon.
With notable inflows from traditional finance institutions like Fidelity Ethereum Fund and predictions of a new Ether all-time high from experts like Ryan Adams and Pentoshi, the future of Ethereum remains uncertain yet promising.
While the possibility of Ether hitting $5,000 by year-end seems slim, the influx of institutional investments and positive market sentiment indicate a potential bullish trend in the crypto space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their research before making any financial decisions.