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Although Ethereum is currently up about 46% from its starting point in early 2024, December underlined by a notable correction. This correction saw Ethereum drop noticeably from a mid-month price of $4,000 and is now consolidating below $3,400.
Crypto analyst Trader Tardigrade recently shared a bullish outlook for Ethereum in light of this consolidation. Notably, the analyst has predicted a rise to $8,000 sometime in 2025.
Historical pattern says bullish trajectory for Ethereum
Trader Tardigrade, known for identifying long-term market trends, took to social media platform X to share insights in Ethereum’s price potential. According to technical analysis, the second largest cryptocurrency is now in the final stages of consolidation before starting a strong leg up. This consolidation has made ETH’s previous all-time high seem insurmountable, especially since ETH has encountered resistance at the $4,000 price level several times in the current market cycle. Despite this, Ethereum’s target of $8,000 remains unchanged, according to Trader Tardigrade.
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The basis 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 the current trajectory. During that earlier cycle, Ethereum consolidated around $500 for an extended period, and the then all-time high of $1,500 seemed out of reach. However, this consolidation was followed by an explosive rally in 2021, against a backdrop of inflows and interest in the broader cryptocurrency market.
Trader Tardigrade sees parallels between that historical period and Ethereum’s continued price action in the 2021-2025 cycle. Therefore, the current cryptocurrency consolidation phase is building the necessary momentum for a similar rallyone that could ultimately push Ethereum to an unprecedented price of $8,000.
Long-term ETH holders await a renewed rally to new all-time highs
If the $8,000 price target is reached, Ethereum could trade at new highs and 64% above the current all-time high of $4,878. While this outlook is based on parallels to the 2021 rally, the factors that could boost ETH in the current cycle are very different than they were then. Ethereum’s 2021 rally was boosted by interest in decentralized finance (DeFi), non-fungible tokens (NFTs), dApps and smart contracts, with ETH leading the way.
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Recent market dynamics place factors such as institutional demand and inflows into Spot Ethereum ETFs as the main drivers of an expected Ethereum price rise at this point.
Against this backdrop, on-chain data shows that Ethereum has done just that attracted more long-term holders in 2024 compared to Bitcoin. As it stands now, approximately 75% of ETH holders qualify as long-term holders, with many of them anticipating ETH’s movement above $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
