Ethereum's Price Might Surge to $13,000 If Trends Resemble Previous Bull Markets, Analysts Project
Analysts predict that Ethereum's price could rise to $13,000 under certain conditions, reflecting patterns from prior market cycles.
Ethereum (ETH) may see a rise to as much as $13,000 during this cycle if it follows historical trends observed in previous bull markets, as stated by analysts. Currently, ETH prices stand at around $4,400, reflecting a significant increase from previous lows of below $1,500 in April.
Recent analysis from Michael Nadeau, founder of DeFi Report, highlights that Ethereum trades at approximately 92% above its 200-week moving average, currently noted at $2,400. In the previous growth cycle, ETH peaked at just over $4,870 around November 2021, operating at 492% above its long-term moving average.
Price Predictions
- If Ethereum were to maintain a level of 200% above the 200-week moving average, projections place it at $7,300.
- Should it achieve 400% above this long-term average, prices could reach beyond $12,000, merely 170% higher than current values.
It’s essential to note that the road to these projections may encounter volatility. Analyst Tom Lee from Fundstrat has suggested a potential super cycle for Ethereum prices leading to five-figure valuations, despite the historical precedents showing sharp declines.
Path to Recovery In 2018, Ethereum witnessed a 94% decline from its peak prices, indicating the cryptocurrency’s potential for undergoing drastic shifts in value.
Based on a base case scenario—where ETH maintains a value 250% above its 200-week moving average—it would peak at around $8,500. Furthermore, Nadeau mentions that if Ethereum could capture 35% of Bitcoin’s market cap, currently at 23.4%, and if Bitcoin approaches $150,000 this cycle, Ethereum’s price could potentially align around $8,600.
In conclusion, as trader Merlijn noted, Ethereum is showing patterns reminiscent of the 2021 cycle, stating:
“Now, ETH is testing the same level again. Same structure. Same energy. Only difference this time? ETFs and institutions are in the mix.”
Recent Developments
Grayscale has recently launched the first Ether staking ETF in the United States, with digital asset treasuries acquiring approximately 4.7% of total ETH supply in a matter of months. As Ethereum stabilizes currently, market indicators suggest it is poised for a significant breakout, with the bull market dynamics still in play.
