This article is also available in Spanish.
While Ethereum is currently up about 46% from where it started in early 2024, December was highlighted with a clear correction. This correction caused Ethereum’s price to drop noticeably from $4,000 mid-month, and it is now consolidating below $3,400.
Cryptocurrency analyst Trader Tardigrade recently shared an positive outlook for Ethereum in airy of this consolidation. Specifically, the analyst forecasts a acute escalate to $8,000 in 2025.
The historical pattern says a bullish trajectory for Ethereum
Trader Tardigrade, known for identifying long-term market trends, spoke out on the social media platform X share your observations into Ethereum’s price potential. According to technical analysis, the second largest cryptocurrency is currently in the final phase of consolidation before starting a powerful leg up. This consolidation has made ETH’s previous all-time high seem unbreakable, especially as it has repeatedly faced resistance at the $4,000 price level during the current market cycle. Still, Ethereum’s $8,000 target remains unchanged, according to Trader Tardigrade.
The basis of Trader Tardigrade’s analysis is the weekly ETH candlestick chart, where patterns from the previous 2018-2021 market cycle provide a roadmap for its current trajectory. During this earlier cycle, Ethereum consolidated near the $500 level for an extended period, and its then all-time high of $1,500 seemed unattainable. However, this consolidation has been followed by a surge in 2021 amid currency inflows and interest in the broader cryptocurrency market.
Trader Tardigrade sees similarities between this historical period and the ongoing Ethereum price action in the 2021-2025 cycle. Therefore, the current phase of cryptocurrency consolidation is building what is necessary impulse for a similar rallywhich could ultimately push Ethereum to an unprecedented price of $8,000.
Long-term ETH holders are waiting for it to rise again to recent all-time highs
Hitting the $8,000 price target would see Ethereum trading hit recent highs and be 64% above its current all-time high of $4,878. While this outlook is based on similarities to the 2021 rally, the factors that could push ETH forward in the current cycle are very different than back then. Ethereum’s growth in 2021 was boosted by interest in decentralized finance (DeFi), non-fungible tokens (NFTs), dApps and sharp contracts, of which ETH was at the forefront.
Related Reading: Dogecoin Price At $5: Analyzing Past Trends And Why A 1500% Upside Is Possible
Recent market dynamics result in factors such as institutional demand and flows into Ethereum Spot ETFs as the main factors driving any expected escalate in Ethereum prices at this point.
Against this backdrop, on-chain data shows that Ethereum does attracted more long-term holders in 2024 compared to Bitcoin. As it stands, approximately 75% of ETH holders qualify as long-term holders, and many of them expect the price of ETH to rise above $5,000 and beyond in 2025.
At the time of writing, Ethereum is trading at $3,354 and a move to $8,000 would represent a 140% escalate from the current price level.
Featured image created with Dall.E, chart from Tradingview.com