Ethereum’s Large Consolidation Trend Points To Possible Price Explosion To $8,000
Although Ethereum is currently up approximately 46% from its starting point in early 2024, December has The underline is a noteworthy correction. This correction caused Ethereum to fall significantly from the $4,000 price point mid-month and now finds itself consolidating below $3,400.
In light of this consolidation, cryptocurrency analyst Trader Tardigrade recently shared a bullish outlook on Ethereum. In particular, analysts expect it to surge to $8,000 sometime in 2025.
Historical patterns suggest a bullish trajectory for Ethereum
Trader Tardigrade, known for identifying long-term market trends, starts using social media platform X share insights Ethereum’s price potential. The second-largest cryptocurrency is currently in the final stages of consolidation, according to technical analysis before starting the powerful leg up. This consolidation makes ETH’s previous all-time highs look insurmountable, especially as it has faced resistance at the $4,000 price level multiple times during the current market cycle. Nonetheless, Ethereum’s $8,000 target remains unchanged, according to Trader Tardigrade.
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The basis of Trader Tardigrade’s analysis lies in ETH’s weekly candlestick charts, where patterns from the previous market cycle between 2018 and 2021 provide a roadmap for its current trajectory. In earlier cycles, Ethereum was consolidating near the $500 mark for an extended period of time, while the all-time high of $1,500 seemed out of reach at the time. However, this consolidation was followed by an explosive rally in 2021, amid inflows of capital and interest in the broader cryptocurrency market.
Trader Tardigrade sees similarities between this historical period and Ethereum’s ongoing price action during the 2021-2025 cycle. Therefore, the current integration phase of cryptocurrencies is building the necessary A rebound-like momentumcould eventually push Ethereum prices to an unprecedented $8,000.
Long-term ETH holders await another rally to new all-time highs
Reaching the $8,000 price target would see Ethereum trade at a new high, 64% above the current all-time high of $4,878. While this outlook is similar to the 2021 rally, the factors that may drive ETH higher in the current cycle are significantly different than then. Ethereum’s rise in 2021 has been driven by interest in decentralized finance (DeFi), non-fungible tokens (NFTs), dApps, and smart contracts, with ETH leading the way.
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Recent market dynamics have impacted institutional demand and Inflows into Spot Ethereum ETF As the main driver of any expected Ethereum price increase at the moment.
Against this backdrop, on-chain data shows that Ethereum has Attracting more long-term holders 2024 Compared to Bitcoin. Currently, approximately 75% of ETH holders qualify as long-term holders, with many expecting the price of ETH to rise above $5,000 or even higher by 2025.
As of this writing, Ethereum is trading at $3,354, and a move to $8,000 would represent a 140% increase from current price levels.
Featured image created using Dall.E, chart from Tradingview.com
