Pepperstone’s Chris Weston says most clients are net-long on Ether
Ethereum is primed for $5k and Bitcoin could soon hit $70,000
Bitcoin’s surge above $68,000 and Ethereum’s run to a new all-time high above $4,800 is down to the influx of new money.
According to Pepperstone’s head of research Chris Weston, the inflow of capital into crypto is driving prices higher as demand explodes.
“Crypto is where the fast money is at. Ethereum is trending like a dream and I’d be long and strong here,” Weston told Reuters on Tuesday.
Ethereum climbed as high as $4,857 in early deals Tuesday, hitting the landmark price level amid a 16% spike in daily volume. According to Weston, most clients are bullish about ETH, with over three quarters holding long positions to suggest another leg up to $5,000 is more than likely.
“Clients are net long, with 79% of open positions held long, and I can sense the $5k party could get going soon,” he added.
Crypto analyst Benjamin Cowen called Ethereum “an absolute beast” and expects further gains well into 2022.
Bitcoin has also benefited from strong demand over much of 2021, with data showing increased institutional adoption and positive regulatory conditions contributing to the more than 340% price surge this past year.
This week, upward momentum has been accelerated by inflation fears across the stock market, with money flowing into safe-haven assets.
On Monday, ARK36 fund manager Mikkel Morch told CNBC that current price action could see BTC top $70,000. He points to why there might be no major pullback for Bitcoin, noting:
“The uptick doesn’t seem to be leverage-driven but rather results from the increased demand on the spot market where there’s currently very little sell-side liquidity”.
However, crypto analyst Michael van de Poppe thinks it’s good to be cautious.
“Euphoria going through the roof. Yes, the market is easy, but be aware of the fact that markets can turn the other way quite fast. Don’t forget to take profits.”