Is Ethereum Ready for a Major Rally?

Rise to $2,400 or Crash to $1,000: What’s Next for ETH?

The second-largest cryptocurrency has seen a slight resurgence in recent days, but some bullish signals suggest it could be on the verge of another rally.

Analysts believe the price could soon surpass $2,300, while others warn that a potential decline to $1,000 could also be on the way.

Trade exodus and more

Popular analyst Ali Martinez revealed that investors withdrew around 1 million ETH (worth almost $2 billion) from centralized platforms over the past 30 days. A closer look at CryptoQuant shows that the total figure has dropped to around 15.1 million, the lowest level in the last 10 years.

Such action is generally seen as an optimistic sign for the cryptocurrency, with Martinez explaining:

“Declining exchange balances generally indicate reduced pressure on the sell side, a trend that supports Ethereum’s bullish outlook.”

Another positive development around the asset is the return of institutional interest. According to SoSoValue, inflows into spot ETH ETFs have eclipsed outflows most of the time this month, meaning conservative investors like pension funds and hedge funds have increased their exposure, forcing BlackRock, Fidelity, VanEck, Franklin Templeton and other financial giants to back stocks with real ETH.

Institutions aren’t the only ones increasing their interest in the asset, as earlier this week Arthur Hayes (co-founder of BitMEX) spent over $2.5 million to purchase 1,332 units.

The latest forecasts

$2,300 appears to be a common near-term target set by several analysts. According to Ali Martinez, an increase of this magnitude is possible after the formation of a double bottom on the ETH price chart and as long as the asset maintains the level of $1,850.

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For its part, KALEO envisaged an increase to $2.3K by mid-August, which could then be followed by a significant drop to $1,200 and a recovery in October.

Crypto Patel also gave his two cents. The analyst described a potential rise between $2,160 and $2,400 as a likely scenario, going even further to predict a possible explosion up to $10,000 in the event of a confirmed close above $2,400. At the same time, they suggested that a rejection of the depicted range could open the door to a huge crash between $1,500 and $1,000.