Is Ethereum Price Primed for $10K Rally in the Next Bull Cycle?

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As a seasoned crypto investor with a knack for recognizing patterns and trends, I find Julien Bittel’s analysis intriguing. The similarities between ETH‘s 2023 market rally and its current trajectory are undeniably striking, suggesting that we might be on the brink of another bull cycle. If Ethereum indeed surges towards $10,000 as Bittel predicts, it would undoubtedly be a significant milestone in my crypto journey.

During the market’s September bounce-back, the cost of Ethereum sprang back from the 61.8% Fibonacci retracement point, suggesting a strong recovery. As the price of ETH gathers speed for the bullish trend in October, its likeness to the 2023 market surge suggests it might aim for the $10000 psychological milestone.

Is Ethereum Price Set for a $10K Surge in the Upcoming Bull Cycle?

In a recent tweet, Julien Bittel, CFA, shared an optimistic target for ETH based on solid similarities to its 2023 price action. The attached showcased Ethereum price performance from January 2023 to March 2024, with a side-by-side overlap of Ether’s price trajectory from 2024.

The striking similarity between the two price trajectories suggests that Ethereum’s currency underwent a bullish breakout towards the end of 2023, mirroring trends observed in previous years. If this trend persists, there is a strong possibility that Ethereum could reach new heights, surpassing its current all-time high of $4891.

According to Bittel’s prediction, the value of Ethereum might reach between $7,000 and $10,000 by January 2025, similar to the rapid expansion seen during past market cycles.

ETH is still looking a lot like a 2023 redux.
Imagine…#Ethereum
— Julien Bittel, CFA (@BittelJulien) September 25, 2024

Whales Accumulate as Ethereum Supply on Exchanges Hits New Lows

Based on information from Santiment, it’s been observed that the proportion of Ethereum owned by major wallets has experienced substantial growth starting from March 2024, now amounting to 44.1%. This rise indicates that these large holders are actively amassing this asset, demonstrating their belief in its potential for future expansion.

Furthermore, the amount of ETH held on exchanges has been gradually dropping and currently stands at approximately 10.1 million coins. This downward pattern suggests that the readily available Ether supply on exchanges is being reduced as investors are accumulating it, potentially lowering the risk of a significant market correction.

Is Ethereum Price Primed for $10K Rally in the Next Bull Cycle?

Ethereum Foundation’s ETH Sales Could Spark Market Volatility

Today, it’s been reported that the Ethereum Foundation offloaded 100 ETH in exchange for approximately 2.62 million DAI, as per information from Spot On Chain, a real-time blockchain data tracker. This platform has indicated that the Ethereum Foundation might continue selling ETH up until 2024. The latest transaction adds to the total sales this year, which now stand at 3,766 ETH sold for roughly 10.46 million DAI through CoWSwap, with an average price of around $2,777 per ETH.

Notably, 1,250 ETH (worth approximately $3.06M) were sold in September alone.

The Ethereum Foundation sold another 100 $ETH for 262,474 $DAI about 10 minutes ago!
To date in the year 2024, the Ethereum Foundation has directly disposed of 3,766 ETH for a total of 10.46 million DAI through #CoWSwap at an average price point of approximately $2,777. It’s worth mentioning that in September, they sold 1,250 ETH, which equates to around 3.06 million dollars.
— Spot On Chain (@spotonchain) September 30, 2024

Generally speaking, such transactions might lead to market fluctuations and heighten the demand for more supply. As Ethereum’s price faces this selling force, it may cause a brief dip before regaining its upward trend, driven by bullish sentiments once again.

ETH Price Faces Key Resistance with $2,100 Support in Focus

Over the past three weeks, the estimated price of Ethereum surged noticeably from approximately $2150 to around $2723, representing a substantial 26% rise. Nevertheless, it subsequently dipped by 5%, settling at $2600. This downturn suggests a significant amount of selling pressure above the current price level.

If the 50-day Exponential moving average proves strong as a barrier, the price of ETH might drop by approximately 18% to revisit the 61.8% Fibonacci retracement level at $2100. This particular Fibonacci level is an important area for buyers to revitalize their bullish energy and potentially restore the uptrend.

As a crypto investor, I’ve noticed that the current level is reinforced by an upward-sloping trendline that has stayed strong since last June. In the past, bounces from this support have nearly doubled ETH‘s value, as evident in November 2022 and October 2023.

Is Ethereum Price Primed for $10K Rally in the Next Bull Cycle?

Instead, if sellers manage to break the long-awaited support trendline, the bullish argument will no longer hold true.

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2024-09-30 20:04