The price of Ethereum was not immune to the sharp decline that swept the broader crypto market over the weekend. Selling pressure intensified on Monday, pushing the second-largest cryptocurrency towards the $2,150 level at its lowest.
Nonetheless, some analysts remain convinced that Ethereum’s long-term structure still portends significantly higher prices.
Ethereum Price Creates Long-Term Breakout Pressure
According to an analysis shared by market commentator Bitcoinsensus on social media platform
This extensive consolidation, the analyst arguescreates pressure for a major breakout once the range is resolved. Based on this long-term model, Bitcoinsensus suggests that ETH could eventually target levels near $7,000 per coin.
Compared to current prices of around $2,337 at the time of writing, such a move would represent a gain of around 200%. However, the analysis also comes with a caveat.
Despite the long-term bullish outlook, Ethereum price may not rise linearly. The analyst warned that the price may first revisit the lower boundary of the squeeze channel, which sits near $1,700 on the weekly chart.
If this scenario comes true and the psychologically significant consequences $2,000 assistance If the level fails to hold, the Ethereum price could see a further decline of around 27% before encountering stronger demand.
Such a drop would further widen the gap between current prices and Ethereum’s all-time high of $4,946, set last year. Currently, ETH remains approximately 53% below that high.
Next phase of growth
Beyond chart patterns, other analysts point to fundamental factors that could support Ethereum price in the long term. In a recent reportanalysts at The Motley Fool highlighted several potential catalysts that they believe could push ETH higher over the course of the year.
They argued that growth could come not only from increased network usage, but also from growing interest from institutions and corporate treasuries seeking exposure to digital assets.
One potential driver is broader adoption in the blockchain sector. Analysts noted that progress in stablecoin legislation and growing interest in real-world assets (RWA) tokenization could mark a turning point for the entire industry.
Staking is another area that could boost Ethereum’s appeal. As a proof-of-stake network, Ethereum allows its holders to earn rewards by locking up their tokens. Currently, most spot Ethereum exchange-traded funds (ETFs) do not offer staking rewards, but that could change.
In December, BlackRock filed paperwork with the U.S. Securities and Exchange Commission (SEC) for a staked Ethereum ETF, a move that analysts say could open the door to broader participation in staking via regulated investment products.
The evolution of layer 2 networks is also seen as a potential tailwind. Analysts expect a combination of technical upgrades, economic incentives and community initiatives to address what they describe as a value imbalance between base layer and layer 2 networks.
Featured image from OpenArt, chart from TradingView.com
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