Several analysts have forecasted an increase in Ethereum’s (ETH) value, predicting that the cryptocurrency could reach $10,000 by the end of the year.
CryptoYoddha, an analyst known to his 49,000 followers on X, has pointed to Ethereum’s historical cyclical accumulation trend, which has previously led to significant price spikes.
CryptoYoddha highlighted a pattern observed between 2018 and mid-2020, where Ethereum accumulated for approximately 700 days before experiencing a dramatic increase from around $300 to over $4,800 in 2021. He suggests that Ethereum is currently in a similar accumulation phase, which, if followed by a breakout, could see ETH surging to $10,000 or even higher, potentially hitting $15,000.
Source: CryptoYoddha
Current Market Performance and Historical Trends
As of this writing, Ethereum is trading at $3,088.15, having experienced a 0.45% gain over the past week after recovering from a dip to $2,865. Despite these gains, Ethereum has not reached a new all-time high in this year’s market rally, unlike Bitcoin, which peaked at $73,682. Ethereum’s highest price this year was $4,066, recorded in mid-March, the highest since its 2021 peak of $4,860.
Since the beginning of the year, Ethereum has increased by 36%, but analysts believe there is still considerable potential for growth. According to CryptoYoddha, the current accumulation phase suggests that once Ethereum breaks out of its pattern, it could experience a substantial price surge, aligning with the upper trendline of its historical price pattern.
Additional Analyst Views on Ethereum’s Potential
Michaël van de Poppe, a well-known Dutch trader with a significant following, also shares a positive outlook for Ethereum. He has suggested that Ethereum is nearing the end of its correction phase and could soon begin a bullish trend. Van de Poppe predicts a potential 10% dip in the short term before Ethereum embarks on a rally that could push it past its all-time high.
— Michaël van de Poppe (@CryptoMichNL) May 15, 2024#Ethereum is at the end stage of the correction.
There's around 10% more to be going down on it, as then we're reaching a higher timeframe support level.
The good times are there in a few weeks time. pic.twitter.com/21mZeSUAxx
Another analyst, Ali Martinez, has identified a “buy signal” on Ethereum’s daily chart using the TD Sequential indicator, which is popular for identifying potential market reversals. Martinez suggests that Ethereum could see a short-term rebound, indicating a favorable period for investors to enter the market.
Factors Influencing Ethereum’s Future Price Movements
Several indicators and market factors suggest that Ethereum could be poised for growth. The Market Value to Realized Value (MVRV) ratio, which helps determine if an asset is overvalued or undervalued, has been declining since mid-March. A low MVRV ratio typically indicates a good buying opportunity.
Additionally, data from CryptoQuant shows that Ethereum’s exchange netflow has been predominantly negative in the past month, indicating a shift from centralized platforms to self-custody methods. This trend reduces immediate selling pressure and is generally considered bullish for the cryptocurrency.
The potential approval of a spot Ethereum ETF in the United States could also influence Ethereum’s price. Such approval may lead to increased institutional investment, although it could also trigger a “sell-the-news” event, similar to what occurred following Bitcoin ETF approvals in January.
