Although Ethereum is currently up about 46% from its starting point at the beginning of 2024, Dec. Emphasized with a significant correction. This correction caused Ethereum to drop significantly from $4,000 in the middle of the month and now finds itself below $3,400.
Crypto analyst Trader Tardigrade recently shared a bullish outlook for Ethereum given the merger. In particular, the analyst predicts a price increase of up to $8,000 in 2025.
The historical pattern tells an upward path for Ethereum
The tardigrade trader, known for spotting long-term market trends, took to social media platform X To share insights to Ethereum price potential. According to technical analysis, the second largest digital currency is now in its final stabilization phase Before starting a strong leg up. This consolidation has made ETH look unprecedented, especially as it has faced resistance at the $4,000 price level several times in the current market cycle. Despite this, Ethereum's $8,000 target remains unchanged, according to Trader Tardigrade.
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The basis of Tardigrade Trader's analysis lies in the weekly ETH candlestick chart, where previous market cycle patterns between 2018 and 2021 provide a map for its current path. During the previous cycle, Ethereum stabilized near $500 for a long time, and its then-high of $1,500 seemed out of reach. However, the consolidation followed an explosive growth in 2021 amid a backdrop of inflows and interest in the broader cryptocurrency market.
Tardigrade Trader sees similarities between that historical period and the ongoing Ethereum price action in the 2021-2025 cycle. Therefore, the current phase of digital currency stabilization is creating imperatives Acceleration for a similar rallya price that could eventually bring Ethereum to an unprecedented price of $8,000.
Long-term holders of ETH are expecting another rally to new record highs
Reaching the $8,000 price target would see Ethereum trade at a new high and 64% higher than its current high of $4,878. Although this outlook is based on parallels with the 2021 rally, the factors that could drive Ethereum higher in the current cycle are very different from then. Ethereum's growth in 2021 was fueled by interest in decentralized finance (DeFi), non-fungible tokens (NFT), dApps and smart contracts, with ETH at the forefront.
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Recent market dynamics factors such as institutional demand and Imports into Ethereum spot ETFs As the main drivers of any anticipated Ethereum price rise at this stage.
Amidst this background, on-chain data suggests that Ethereum has such a job It attracted more long-term holders In 2024 Compared to Bitcoin. As it stands, about 75% of ETH holders qualify as long-term holders, with many predicting that ETH will move above $5,000 and beyond in 2025.
At the time of writing, Ethereum is trading at $3,354, and the move to $8,000 represents a 140% upside from current price levels.
Featured image created with Dall.E, chart from Tradingview.com
