As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market predictions and trends. However, when it comes to Ethereum, I find myself intrigued by the recent analysis put forth by Trader Tardigrade. His technical analysis based on the symmetrical triangle pattern is compelling, especially considering the historical price movements following similar breakouts.
Analysts specializing in cryptocurrencies predict that Ethereum‘s price could reach unprecedented heights, potentially soaring to around $10,000 per ETH, which is significantly higher than its current value of approximately $2,570. This optimistic forecast stems from their technical analysis.
On the popular microblogging site X (previously known as Twitter), analyst Trader Tardigrade forecasted to his 60,000 followers that Ethereum’s value might soar to $10,000, following the breakout from an ascending trendline pattern constructed using symmetrical triangles.
As an analyst, I’ve observed that when Ethereum’s price broke out of its structure in the past, it experienced significant increases. The first breakout resulted in a 70% price increase, while the second time saw a remarkable jump of 140%. If a third breakout occurs, considering the pattern and percentage growth from previous instances, I estimate that Ethereum could potentially surge by approximately 280%, potentially reaching a price of $10,000 per ETH.
#Ethereum is currently following an Ascending Trendline and forming a Symmetrical Triangle pattern 🔥
— Trader Tardigrade (@TATrader_Alan) October 21, 2024
A symmetrical triangle pattern is formed by drawing trendlines, one falling and another one rising, along a converging price range. To confirm a valid break and not a false one, traders should look for a surge in volume and at least two consecutive closes beyond the trendline, according to Investopedia.
In simpler terms, when a symmetrical triangle appears following an uptrend, it often suggests that the price movement will carry on in the same upward direction. This is what traders might anticipate, meaning they expect the price to rise further once the symmetrical triangle forms.
According to a previous report by CryptoGlobe, Matthew Sigel, who leads Digital Assets Research at the international investment firm VanEck, mentioned they anticipate ETH could reach $22,000 by 2030. However, he also pointed out that Ethereum’s evolving foundations might necessitate a revision to their valuation strategy.
Sigel clarified that their initial model presumed an equal distribution of the overall value locked (TVL) between Ethereum and Layer-2 networks, along with an even division of the Maximum Extractable Value (MEV), which they approximated as 0.10% of TVL per year.
According to what he said, there’s a significant difference in how transaction revenue is divided between Ethereum and Layer 2 solutions (L2s). The initial plan suggested that Ethereum would receive 90% while L2s would get only 10%, but over the last four months, it’s been more like 10% for Ethereum and 90% for L2s.
Sigel posited that the change indicates a greater value being derived from Ethereum by L2s compared to what was initially anticipated. If this 10:90 ratio persists, it could cause a decrease of about two-thirds in VanEck’s price target for ETH.
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2024-10-24 03:49