A crypto analyst, Elja on X, predicts that Ethereum (ETH) will reach a staggering $15,000 by 2025 based on technical analysis. The analyst argues that the current bearish sentiment in the crypto market is “temporary.”
Moreover, Elja notes that the second most valuable coin by market cap follows a similar fractal pattern that fueled its previous major price rally in 2021.
Is Ethereum Ready To Rip Despite The Current Consolidation?
Sharing a screen grab of the current ETH price action, Elja says most people in crypto are “short-sighted” and only focus on immediate price movements. In the analyst’s assessment, traders should look at the long-term to understand the overall price pattern.
Related Reading: Bitcoin plummets 20% post-ETF approvals: what’s behind the crash?
Thus far, Ethereum, like Bitcoin (BTC), remains under pressure and struggling to break above immediate resistance levels. Looking at the development in the daily chart, ETH is back at a critical support level of around $2,200. Notably, the coin is down 20% from January 2024 highs of about $2,700.
ETH is under pressure, at least in the short to medium term. As it is, the coin follows the technical candlestick arrangement visible in Bitcoin.
The altcoin downtrend appears to have been triggered by events following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). As an illustration, Bitcoin fell from around $47,000 to below $40,000 this week, weighing down altcoins, including Ethereum.
On-chain data shows that Grayscale Investments has been unloading thousands of coins behind Grayscale Bitcoin Trust (GBTC). Subsequently, there has been a sell-off in Bitcoin and across the altcoin scene. The situation has been made worse for Ethereum following the United States SEC’s decision to postpone the approval of spot Ethereum ETFs.
While these developments have negatively impacted sentiment, Elja believes they will not derail Ethereum’s long-term growth trajectory. Specifically, the analyst notes that ETH is consolidating, a “healthy sign.”
ETH To $15,000: Will Fundamental And Technical Factors Help?
Elja added that when crypto prices consolidate, it could suggest that whales are accumulating their position. Once this ends, ETH prices could trend higher. From the analyst’s chart, the coin will break above $5,000 to $15,000 in the coming sessions.
Related Reading: Bitcoin Bearish Outlook: Analyst Predicts Price Nosedive To $38,130
When making this prediction, the analyst compared the Ethereum price action to the fractal pattern that propelled ETH from around $200 to $4,800 in 15 months from 2019 to 2021. Extrapolating from past price action, Elja believes Ethereum is on a similar path. Based on analysis, the coin will likely break above November 2021 peaks.
Beyond technical factors, ETH supporters cite the decreasing issuance rate. According to Ultrasound Money data, the network has been burning thousands of ETH, reducing supply. Additionally, Larry Fink, the CEO of BlackRock, believes Ethereum will be the choice network for tokenizing real-world assets (RWAs) in the years ahead.
Feature image from Canva, chart from TradingView Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source
