Ethereum’s price could be poised for a historic rally, according to cryptocurrency analysts who, using technical analysis, pointed to a rise to as much as $10,000 per ETH, up from the cryptocurrency’s current $2,570 price tag.
In a post on the microblogging platform X (formerly known as Twitter) to their over 60,000 followers, analyst Trader Tardigrade predicted Ethereum’s price could hit a $10,000 high after breaking out of an ascending trendline pattern formed with symmetrical triangles.
The trader noted that the first time Ethereum’s price broke out of such a structure if moved up 70%, while the second time it did, it went up 140%. If a third breakout does come, the analyst wrote, based on its previous increases and the growth in each increment, it could see a 280% price rise to $10,000 per ETH.
#Ethereum is playing on the Ascending Trendline with Symmetrical Triangles 🔥
The first breakout of the symmetrical triangle led $ETH +70%.
The second breakout of the symmetrical triangle led $ETH +140%.
It comes to the third BREAKOUT right now.
By projecting 2 times more than… pic.twitter.com/7MEp8eqhgD— Trader Tardigrade (@TATrader_Alan) October 21, 2024
A symmetrical triangle pattern is formed by drawing trendlines, one falling and another one rising, along a converging price range. To confirm a valid break and not a false one, traders should look for a surge in volume and at least two consecutive closes beyond the trendline, according to Investopedia.
Symmetrical triangles usually indicate that the price will continue in the same direction as before the triangle formed. Therefore, traders would expect the price to break upward if a symmetrical triangle follows an uptrend.
As CryptoGlobe reported earlier this month Matthew Sigel, Head of Digital Assets Research at global investment firm VanEck noted the firm’s $22,000 price target for ETH is for 2030, but acknowledged that Ethereum’s changing fundamentals suggest that an update to their valuation model is necessary.
Sigel explained that their original model assumed a 50:50 split in total value locked (TVL) between Ethereum and L2s, as well as a 50:50 split on maximum extractable value (MEV), which they estimated at 0.10% of TVL annually.
Per his words, there’s a major discrepancy in the split of transaction revenue between Ethereum and L2s. While the original model assumed a 90:10 split in Ethereum’s favor, the actual split over the past four months has been 10:90 in favor of L2s.
Sigel said that this shift demonstrates that L2s are taking significantly more value from Ethereum than initially expected. He went on to say that if this 10:90 split remains, VanEck’s price target for ETH would drop by two-thirds.
Featured image via Unsplash.
