With the cryptocurrency bull market still on course, a seasoned analyst has asserted that Ethereum will disappoint this cycle.
The crypto market has entered the last year of its bull cycle, renowned for massive upsides and a possible peak. Altcoins have benefited from this bullish scenario, led by the sector’s leader, Ethereum.
Market expert Egrag Crypto has suggested that Ethereum will disappoint many this cycle. In a Wednesday post, he provided a detailed analysis of the asset’s expected performance, including price, market cap, and dominance peaks.
Market Cap and Price Prediction
Egrag dissected Ethereum’s market cap performance using Fibonacci levels in the past two cycles. He attached a chart clearly showing the levels and how he expects the altcoin king to trend this bull run.
The market analyst noted that Ethereum’s market cap peaked around the 1.414 Fibonacci extension during the 2021 bull run. The altcoin’s valuation reached its zenith at $575.9 billion, leading to an all-time high of $4,867.
However, Egrag asserted that Ethereum may struggle to replicate such a Fibonacci extension high, predicting a most probable stop between 1.272 and 1.414. The levels would ensure the asset reaches a market cap ranging from $915 billion to $1.16 trillion.
Still, the analyst insisted that the altcoin king will struggle to break a $1 trillion market cap, citing diminishing returns. As a result, his best probable bet is a peak around the 1.272 extension.
Meanwhile, with a market of $915 billion and a circulating supply of 120.47 million, Ether will trade at $7,594 per coin, a 130% increment from the current market price. Moreover, Egrag stated that Ethereum’s best target would be 2.1x to 2.3x its current market price, reflecting a peak between $7,000 and $9,000.
Notably, the price prediction aligns closely with an analysis from Steno Research. The financial firm speculated that the altcoin king will hit $8,000 before the end of this year.
Market Dominance Outlook
Egrag also attached a dominance chart indicating Ethereum’s trend since 2018. The chart shows that the asset’s market dominance reached 26% in January 2018, and its all-time peak is 30.81%, attained a year earlier.
Furthermore, the market expert stated that Ethereum’s dominance will trade between the 0.5 and 0.702 Fib. levels, representing 15-20% precedence. However, he picked 0.702 as his expected target.
Using the analogy, he noted that if the cryptocurrency market reaches a total market cap of $5 trillion, Ethereum will reach $1 trillion (20%). This supports his assertion that Ethereum’s cap will trade around the level.
In the meantime, Ethereum continues its sideways movement, trading at $3,324 at the time of writing.
