Ethereum has seen an explosive price achievement over the past couple of weeks. In just about 20 days, the asset has climbed from $245 to a local high of $415. As of this article’s reporting, the advance cryptocurrency trades hands for $394 — just modest of the central $400 resistance.
Although ETH has earlier seen this sheer rally, a fractal analysis by a trader who foretold much of the current rally recommends there’s room to run.
In addition to the Fractal, fund managers in the space see various significant analyses of why Ethereum is primed to move higher.
Ethereum Could Soon Climb Past $1,000, Foretells Fractal.
Ethereum’s current price movement from $245 to $415 is just the start of a more notable rally, one analyst advised on August 6.
In an analysis mentioned on Twitter, the trader announced this chart below. It explains that Ethereum’s macro price movement from the 2018 highs until now looks almost identical to BTC’s price action from the 2014 highs to the start of the 2016-2017 bull run.
This so-called “fractal” analysis predicts that Ethereum will rally past $1,000, likely in the middle or heading into the end of 2021.
The trader that made this analyst predicted days after the March crash that Bitcoin was likely to jump back to pre-crash levels. He also predicted the ongoing ETH breakout.
Fractal analysis of ETH’s macro price action by trader “The Crypto Wolf,” called recent price action. Chart from TradingView.com
Analysis accepted by Fund Managers.
There are some fund managers in the space convinced that Ethereum will rally to fresh all-time highs above $1,000 this market cycle.
Chris Burniske of Placeholder Capital discussed on this in an extensive Twitter thread earlier this year. Referencing how ETH will benefit from Bitcoin likely rocketing to a price of $50,000 this cycle, the prominent investor wrote:
“IF $BTC GOES > $50,000 IN THE NEXT CYCLE, AND $ETHBTC RETURNS TO ITS FORMER ATH, THEN EXPECT TO SEE $ETH > $7,500. WHY #BITCOIN > $50,000? AS DISCUSSED IN MAY 2019, IF $BTC IS HALF AS VOLATILE IN THIS CYCLE AS IT WAS IN THE LAST, WE WOULD STILL EXPECT IT TO CROSS $50K AND $1 TRILLION IN NETWORK VALUE. $1 TRILLION HAS BEEN A LONG TIME COMING FOR THIS MACRO-ASSET. MEANWHILE, TO THE MAINSTREAM ETH WILL BE THE NEW KID ON THE BLOCK — EXPECT A FRENZY TO GO WITH THAT REALIZATION.”
IF $BTC GOES > $50,000 IN THE NEXT CYCLE, AND $ETHBTC RETURNS TO ITS FORMER ATH, THEN EXPECT TO SEE $ETH > $7,500. PIC.TWITTER.COM/5TETUJDBCS
— CHRIS BURNISKE (@CBURNISKE) JUNE 14, 2020
He described in a separate thread that decentralized finance would hit record levels of demand for ETH: “#DeFi will flex Ethereum’s ability to perform *all* financial services.”
Higher demand, considering steady or decreasing supply, raises the price of any asset.