Despite Ethereum’s recent penniless performance, the Glassnode co-founders, who go by the name “Negentrophic” on Elon Musk’s social media platform X, provide that the potential of ETH has not yet been fully exploited.
Analyzing historical data and market patterns similar to those seen in early 2021, Negenthropic predicts that Ethereum could reach a high of $7,500, a prediction based on current market structures and technical indicators such as the Fibonacci extension level at 161.8.
Diving into the $7,500 Forecast
Evaluating these experts’ predictions, it appears that the ETH chart has now shown the Fibonacci extension level seen in 2021, which signaled a significant rally for Ethereum, suggesting that history may indeed be repeating itself.
Technical analysis shows a developing bullish flag pattern on the Ethereum chart, which usually indicates a continuation of the uptrend.
Ethereum could be poised for a significant price rally if this pattern continues, especially given the increased market interest and upcoming ETF trading in the ETH spot market.
For Ethereum to reach its projected price target of $7,500, it must first overcome several significant resistance levels. The initial major hurdle is the $4,000 mark, consistent with the Fibonacci extension at 1.618 from the previous cycle.
A break above this level would confirm the bullish market structure and pave the way for higher price targets. Negentrophic was particularly noted on X:
We believe the market is moving in structures. And this structure gives us a target of ~7500 as the ultimate high for ETH. This is 161.8% Fib extensions from the structure that we are currently seeing. This would mirror the Fib extension that we saw in 2021. And it would also indicate a sturdy ETH rally coming soon!
Ethereum Signs of Recovery
Meanwhile, in the current market environment, ETH has shown signs of recovery, rising from lows below $3,300 to around $3,483. However, the road to recovery remains challenging, as indicated by the slight downtrend in the weekly results.
Market experts such as Lekker Capital’s Quinn Thompson have echoed similar bullish sentiments for Ethereum, suggesting a potential rise to $7,000 ahead of the upcoming November US elections.
The forecast is part of a broader sense of optimism in the cryptocurrency community, where sentiment has shifted from overwhelmingly bearish to cautiously confident about a significant enhance in the value of major cryptocurrencies.
Title: We are facing one of the most obvious and attractive opportunities to buy cryptocurrencies in recent times.
Subtitle: Even though the market has completely reset, the structurally positive cycles of cryptocurrency elections, liquidity and dynamics remain intact.
Body: Throughout my 5 years in…
— Quinn Thompson (@qthomp) June 26, 2024
Featured image created with DALL-E, chart from TradingView
