Key Reasons Why Ethereum Is Destined To Rocket Past $10,000 This Cycle Analyst
Ethereums native token, Ether (ETH), has rallied over 12% since slumping to $2,460 on Feb. 3, following the crypto markets drawdown. While most altcoins have struggled to master meaningful recovery, ETH has received plaudits for its bullish outlook.
With sentiment turning in favor of the largest altcoin, one analyst believes that ETH is destined for a breakout to $10,000 this cycle.
Data Suggests New Ether All-Time Highs Could Be Around The Corner
In a recent post on X, analyst Ted Pillows compared Ethers current price action to Bitcoins movement during the previous bull market cycle, observing a familiar bullish pattern.
Pillows point to historical data that suggests that in the 2015-2017 bull cycle, the price of Bitcoin reached a bear market bottom at around $200-$205. After a period of rangebound action and extreme volatility, the crypto ultimately broke out in a parabolic rally toward $780, representing a new historic high at the time.
According to Pillows analysis, Ethereum is mirroring a similar course, having completed its accumulation and recently breaching stubborn resistance levels. Ether has also undergone considerable volatility recently, exacerbated by broader crypto market sell-offs that pulled its price below the psychologically important $3,000 price point.
Bitcoin has risen by 90.5% in the last year. By contrast, Ether has plunged by 6.2% during the same timeframe. While BTC hit a fresh all-time high of $108,786 last month, ETH has yet to surpass its current record price of $4,878, which was registered back in November 2021.
Still, Pillows listed some factors that could buoy the second-largest cryptocurrencys bullish outlook.
Ethereum Eyes $10,000
He cited Ethereums total value locked (TVL) and stablecoin liquidity dominance. As of press time, ETH remains the decentralized finance (DeFi) king, capturing over 52% of the total DeFi markets TVL.
The pundit also emphasized the effect of growing institutional interest and accumulation. ETH holders could see some direct benefit from Ethereum gaining more exposure.
Finally, he noted that Ether currently boasts a lower inflation rate than Bitcoin and 99% of the altcoins in the market.
Based on these bullish factors, Pillows suggests that investors and traders alike should aim for the moon, indicating that a $5,000 target is too conservative while advocating for a lofty $10,000 prediction.
Meanwhile, Ether holders are hopeful that the potential approval of staking integration within spot ETH exchange-traded funds (ETFs), which are currently being reviewed by the US Securities and Exchange Commission (SEC), could trigger a move back above $3,000 in the near term.
Read more: https://zycrypto.com/key-reasons-why-ethereum-is-destined-to-rocket-past-10000-this-cycle-analyst/
Text source: ZyCrypto
