Ethereum's price may be on the verge of a significant rally, with analysts suggesting it could reach as high as $10,000 per ETH from its current price of around $2,570. Technical analysis points to a breakout pattern that could drive the price higher.
In a recent post on X (formerly Twitter), analyst Trader Tardigrade shared insights with over 60,000 followers, indicating that Ethereum's price might ascend after breaking out of a symmetrical triangle pattern. Historical data shows that the last two breakouts from similar structures resulted in price increases of 70% and 140%, respectively. If a third breakout occurs, the analyst speculates a potential rise of 280%, potentially bringing ETH to $10,000.
A symmetrical triangle is characterized by converging trendlines: one upward and one downward. To confirm a breakout, traders typically look for increased trading volume and at least two consecutive closes beyond the trendline. This pattern often suggests that the price will continue in the direction of the prior trend, leading to expectations of an upward movement if the breakout follows an uptrend.
Matthew Sigel, Head of Digital Assets Research at global investment firm VanEck, recently provided an ambitious price target of $22,000 for ETH by 2030. However, he noted that Ethereum's evolving fundamentals necessitate a revision of their valuation model.
Sigel explained that their original model assumed a 50:50 distribution of total value locked (TVL) between Ethereum and Layer 2 solutions (L2s). Yet, recent data shows a significant shift, with the actual split favoring L2s at 90% to Ethereum's 10%. This discrepancy suggests that L2s are extracting far more value from Ethereum than previously anticipated. If this trend continues, VanEck's price target for ETH could be reduced by two-thirds.
While the potential for Ethereum to reach $10,000 seems ambitious, the current technical indicators and historical patterns provide a foundation for this speculation. However, shifts in the broader ecosystem, particularly the rise of L2 solutions, could also impact Ethereum’s long-term valuation. Investors and traders alike will be watching closely to see how these developments unfold in the coming months.
October 2024, Cryptoniteuae