Despite Ethereum’s recent destitute performance, the co-founders of Glassnode, which goes by the name “Negentrophic” on Elon Musk’s X social media platform, provide that the potential of ETH has not yet been fully exploited.
Analyzing historical data and market patterns similar to those 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 of 161.8 .
Diving forecast $7,500
Judging by these experts’ predictions, the Fibonacci extension level seen in 2021, which signaled significant growth for Ethereum, has now apparently appeared on the ETH chart, suggesting that history may indeed be repeating itself.
Technical analysis shows a developing bull flag pattern on the Ethereum chart, which usually indicates a continuation of the bullish trend.
Ethereum could be poised for a significant price boost if this pattern continues, especially given the increased market interest and upcoming ETH cash ETF trading.
For Ethereum to reach its projected $7,500 price target, it must first clear several significant resistance levels. The initial major obstacle is the $4,000 mark, in line with the 1.618 Fibonacci extension from the previous cycle.
A break above this level would confirm the bullish market structure and allow for higher price targets. Negentrophic especially noted on X:
We believe that the market moves in structures. This structure gives us a target of ~7500 as the final high for ETH. This is 161.8% of the Fib extensions from the structure we are currently developing. This would mirror the Fib extension we saw in 2021. This would also represent a mighty rally in ETH that is expected to occur…. Soon!
Signs of recovery in Ethereum
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 share similarly bullish sentiments towards Ethereum, suggesting a potential rise to $7,000 by the upcoming US elections in November.
This forecast is part of broader optimism in the cryptocurrency community, where sentiment has changed from overwhelmingly bearish to cautiously bullish about significant increases 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
