Ethereum’s Bullish Trajectory: A $8,000 Target in Sight?
Although Ethereum is currently up by about 46% from the starting point at the beginning of 2024, December has been underlined by a notable correction. This correction saw Ethereum declining noticeably from a $4,000 price point in the middle of the month, and it now finds itself consolidating below $3,400.
Crypto analyst Trader Tardigrade recently shared a bullish outlook for Ethereum in light of this consolidation. Particularly, the analyst has projected a surge to $8,000 sometime in 2025.
Bullish Trajectory: A Historical Pattern?
Trader Tardigrade, known for identifying long-term market trends, took to social media platform X to share insights into Ethereum’s price potential. According to technical analysis, the second-largest cryptocurrency is now in its final consolidation phase before commencing a strong leg upwards. This consolidation has made ETH’s previous all-time high look unsurmountable, especially as it has faced resistance at the $4,000 price level multiple times in the current market cycle. Despite this, according to Trader Tardigrade, Ethereum’s target of $8,000 remains unchanged.
Related Reading
The foundation of Trader Tardigrade’s analysis lies in ETH’s weekly candlestick chart, where patterns from the previous market cycle between 2018 and 2021 provide a roadmap for its current trajectory. During that earlier cycle, Ethereum consolidated near the $500 mark for an extended period, and its then all-time high of $1,500 seemed out of reach. However, this consolidation was followed by an explosive rally in 2021 amidst a backdrop of inflows and interest in the broader cryptocurrency market.
Trader Tardigrade sees parallels between that historical period and Ethereum’s ongoing price action in the 2021–2025 cycle. Therefore, the cryptocurrency’s current consolidation phase is building the necessary momentum for a similar rally, one that could ultimately push Ethereum to an unprecedented $8,000 price.
ETH Long-Term Holders Await Renewed Rally To New All-Time Highs
Reaching the $8,000 price target would see Ethereum trading at new highs and 64% above its current all-time high of $4,878. Although this outlook is based on parallels with the 2021 rally, factors that could push ETH in the current cycle are very different than they were back then. Ethereum’s rally in 2021 was bolstered by interest in decentralized finance (DeFi), non-fungible tokens (NFTs), dApps, and smart contracts, of which ETH was at the forefront.
Related Reading: Dogecoin Price At $5: Analyzing Previous Trends And Why A 1,500% Rally Is Possible
Conclusion
FAQs
Q: What is the current price of Ethereum?
A: The current price of Ethereum is $3,354.
Q: What is the projected price target for Ethereum?
A: The projected price target for Ethereum is $8,000.
Q: What is the basis for the projected price target?
A: The basis for the projected price target is the historical pattern of Ethereum’s price action, with parallels drawn between the 2018-2021 cycle and the 2021-2025 cycle.
Q: What are the key drivers of the projected price rally?
A: The key drivers of the projected price rally are institutional demand and inflows into Spot Ethereum ETFs.
Q: What is the current ratio of long-term holders to short-term holders on Ethereum?
A: The current ratio of long-term holders to short-term holders on Ethereum is 75%, with many of these long-term holders anticipating ETH’s move above $5,000 and beyond in 2025.
