.jpg)
Although the price of Ethereum is currently about 46% higher than its starting point at the beginning of 2024, December was… It is emphasized by a noticeable correction. This correction saw the price of Ethereum drop significantly from the $4,000 price point mid-month, and it now finds itself consolidating under $3,400.
Cryptocurrency analyst Trader Tardigrade recently shared a bullish forecast for Ethereum in light of this consolidation. In particular, the analyst predicted a rise to $8,000 sometime in 2025.
The historical pattern says an upward trajectory for Ethereum
Trader Tardigrade, known for identifying long-term market trends, has moved to social media platform X To exchange ideas To the price potential of Ethereum. According to technical analysis, the second largest cryptocurrency is now going through the final consolidation phase Before starting with a strong leg up. This consolidation has made ETH’s previous high seem insurmountable, especially as it has encountered resistance at the $4,000 price level several times in the current market cycle. However, according to Trader Tardigrade, Ethereum’s $8,000 target remains unchanged.
Related reading
The basis 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 to its current path. During that previous cycle, Ethereum consolidated near the $500 mark for a long time, and an all-time high of $1,500 seemed a long way off. However, this consolidation was followed by a massive rally in 2021 amid a backdrop of inflows and interest in the broader cryptocurrency market.
The Tardigrade trader sees parallels between that historical period and Ethereum’s ongoing price action in the 2021-2025 cycle. Therefore, the current consolidation phase of the cryptocurrency is building what is needed Momentum for a similar rallyThis could eventually push Ethereum to an unprecedented price of $8,000.
Long-term holders of ETH are awaiting a renewed rally to all-time highs
Reaching the $8,000 price target would see Ethereum trading at new highs and 64% above the current all-time high of $4,878. Although these predictions are based on similarities to the 2021 rally, the factors that could drive Ethereum in the current cycle are very different than they were then. Ethereum’s rise in 2021 was fueled by interest in decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized applications, and smart contracts, of which ETH has been at the forefront.
Related reading: Dogecoin Price at $5: Analysis of Past Trends and Why a 1500% Rally is Possible
Recent market dynamics place factors such as institutional demand and Inflows to Spot Ethereum ETFs As the main drivers of any expected rise in Ethereum prices at this point.
Against this backdrop, on-chain data shows that Ethereum has done just that Attract more long-term shareholders In 2024 Compared to Bitcoin. Currently, about 75% of ETH holders qualify as long-term holders, and many of them expect ETH to move above $5,000 and beyond in 2025.
At the time of writing, Ethereum is trading at $3,354, and a move to $8,000 would represent a 140% increase from the current price level.
Featured image created with Dall.E, chart from Tradingview.com
