Ethereum has seen explosive price development over the past three weeks. In just 20 days, the asset has risen from $ 245 to a local high of $ 415. At the time of this writing, the leading cryptocurrency hands are trading for $ 394 – just short of the crucial $ 400 resistance.
Although ETH has already seen this steep rally, fractal analysis by a trader who predicted much of the recent rally suggests there is still room to run.
In addition to the fractal, fund managers see several fundamental reasons in this area why Ethereum is poised to move higher.
Related reading: Crypto Tidbits: Ethereum up 20%, US banks can hold BTC, ETH’s DeFi room is still in Vogue
Ethereum could soon surpass $ 1,000, Fractal predicts
Ethereum’s recent price action, which rose from $ 245 to $ 415, is just the start of a bigger rally, an analyst suggested on Aug. 6.
In an analysis shared with Twitter, the trader published this table below. It shows that Ethereum’s macro price action from the highs of 2018 to now looks almost identical to BTC’s price action from the highs of 2014 to the start of the 2016-2017 bull run.
This so-called “fractal” analysis predicts that Ethereum will rise above $ 1,000, likely in the middle or towards the end of 2021.
The trader who made this analyst predicted days after the March crash that Bitcoin is likely to return to pre-crash levels. He also predicted the ongoing outbreak of ETH.
Fractal analysis of the macro price action of the ETH by the trader “The Crypto Wolf”, who named the most recent price action. Chart from TradingView.com
Related Topics: Coinbase Focuses On DeFi To List 19 New Crypto Assets
Fund managers agree
There are some fund managers in the space who are confident that Ethereum will hit new all-time highs above $ 1,000 in this market cycle.
Placeholder Capital’s Chris Burniske addressed this in an extensive Twitter thread earlier this year. The prominent investor was referring to how ETH will benefit from Bitcoin expected to soar to a price of $ 50,000 this cycle:
“If $ BTC goes> $ 50,000 in the next cycle and $ ETHBTC returns to its previous ATH, then expect $ ETH> $ 7,500. Why #bitcoin> $ 50,000? As discussed in May 2019, if BTC was half as volatile this cycle as it was last, we would still surpass a network value of $ 50,000 and $ 1 trillion. $ 1 trillion has been a long time coming for this macro asset. Now mainstream ETH will be the new kid on the block – expect a frenzy that comes with that realization. “
If $ BTC goes> $ 50,000 in the next cycle and $ ETHBTC returns to its previous ATH, then expect $ ETH> $ 7,500. pic.twitter.com/5tetUJdbCS
– Chris Burniske (@cburniske) June 14, 2020
In a separate thread, he stated that decentralized funding will boost demand for ETH to record levels: “#DeFi will improve Ethereum’s ability to provide * all * financial services.”
Higher demand assuming constant or decreasing supply increases the price of an asset.
Featured Image from Shutterstock Price Tags: ethusd, ethbtc charts from TradingView.com This eerie fractal of the Ethereum bear market predicts a $ 1,000 rally
Comments are closed.