YouTube channel Discover Crypto’s host has spotted signals that could lead to a 10-time rally on Ethereum in the next year. In a recently uploaded video, the host used Ethereum’s historical behavior to interpret the current trend, highlighting that a significant bull run could be close.
According to the Discover Crypto host, Ethereum broke out of long-term horizontal resistance to kickstart the previous bull cycle. Using the ETH/USD daily chart on TradingView, the host showed that the horizontal resistance channel lasted approximately 1,029 days. He noted that the flagship altcoin surged rapidly shortly after the breakout.
The channel host showed that in just about 130 days after the breakout, Ethereum rallied by more than five times. He compared the 2020 Ethereum price behavior to its current trend pattern, showing some crucial similarities that could lead to a familiar outcome.
By mirroring the historical pattern, the host showed that a 1,000-day sideways movement would lead Ethereum’s current sideways trend to around September 2024. He also revealed that breaking out around that level would imply that the top altcoin would trade around $3,500 by then.
The analyst showed that a 450% pump, similar to Ethereum’s rally in the previous bull run, would see the price surge close to $20,000. The host noted that he would not expect Ethereum to surge by that much. Instead, he predicts a 225% rally for the altcoin, giving a $10,000 to $12,000 target.
The host used the Relative Strength Index (RSI) momentum indicator for further analysis. He showed from historical behavior that Ethereum rallied 10 times after breaking above the overbought RSI level in 2020.
From the current chart, he showed that Ethereum has just broken above the RSI overbought level. Hence, there is the possibility of a 10-time rally that could push the price to $22,500.
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