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Although Ethereum is currently up about 46% from where it started in early 2024, December was underlined by a notable correction. This correction saw Ethereum fall significantly from a mid-month price of $4,000, and now finds itself consolidating below $3,400.
Crypto analyst Trader Tardigrade recently shared a bullish outlook for Ethereum in light of this consolidation. In particular, the analyst predicts a rise to $8,000 by 2025.
Historical pattern indicates bullish trajectory for Ethereum
Trader Tardigrade, known for identifying long-term market trends, turned to social media platform to share ideas in the price potential of Ethereum. According to technical analysis, the second largest cryptocurrency is now in its final consolidation phase. before starting a strong step upwards. This consolidation has made ETH’s previous all-time high insurmountable, especially as it has repeatedly faced resistance at the $4,000 price level during the current market cycle. Despite this, according to Trader Tardigrade, Ethereum’s target of $8,000 remains unchanged.
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The foundation of Trader Tardigrade’s analysis lies in ETH’s weekly candlestick chart, where patterns from the previous market cycle between 2018 and 2021 provide a roadmap for its current trajectory. During this previous cycle, Ethereum consolidated near the $500 mark for an extended period, and its all-time high of $1,500 seemed out of reach. However, this consolidation was followed by an explosive rally in 2021 amid influx and interest in the broader cryptocurrency market.
Trader Tardigrade sees parallels between this historic period and Ethereum’s continued price action during the 2021-2025 cycle. Therefore, the current phase of cryptocurrency consolidation creates the necessary conditions momentum for a similar rallywhich could ultimately push Ethereum to an all-time high of $8,000.
Long-term ETH holders await another rally to new all-time highs
Reaching the $8,000 price target would allow Ethereum to trade at new highs and 64% above its current all-time high of $4,878. While this outlook is based on parallels to the 2021 rally, the factors that could push ETH into the current cycle are very different than they were back then. Ethereum’s rally in 2021 was supported by interest in decentralized finance (DeFi), non-fungible tokens (NFTs), dApps, and smart contracts, of which ETH was at the forefront.
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Recent market dynamics place factors such as institutional demand and entries into Spot Ethereum ETFs as the main drivers of any expected rise in Ethereum prices at this point.
In this context, on-chain data shows that Ethereum has attracted more long-term holders in 2024 compared to Bitcoin. Currently, around 75% of ETH holders are considered long-term holders, with many expecting ETH to surpass $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% increase from the current price level.
Featured image created with Dall.E, chart from Tradingview.com
