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Although ethereum is currently up approximately 46% from the starting point in early 2024, December has been underlined by a notable correction. This correction saw ethereum drop noticeably from a price of $4,000 in the middle of the month, and it now finds itself consolidating below $3,400.
crypto analyst Trader Tardigrade recently shared a bullish outlook for ethereum in light of this consolidation. Notably, the analyst has projected an increase 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 <a target="_blank" href="https://x.com/TATrader_Alan/status/1873707617241219385″ rel=”nofollow”>to share ideas on ethereum price potential. According to technical analysis, the second largest cryptocurrency is now in its final consolidation phase. before starting a strong leg up. This consolidation has made eth's previous all-time high look insurmountable, especially as it has faced resistance at the $4,000 price level several times in the current market cycle. Despite this, according to Trader Tardigrade, ethereum's target of $8,000 remains unchanged.
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The basis of Trader Tardigrade's analysis lies in the weekly candlestick chart of eth, where patterns from the previous market cycle between 2018 and 2021 provide a roadmap for its current trajectory. During that previous cycle, ethereum consolidated near the $500 mark for an extended period, and its all-time high of $1,500 seemed out of reach. However, this consolidation was followed by an explosive rally in 2021 amidst capital inflows and interest in the broader cryptocurrency market.
Trader Tardigrade sees parallels between that historical period and the current ethereum price action in the 2021-2025 cycle. Therefore, the current cryptocurrency consolidation phase is building the necessary conditions. <a target="_blank" href="https://bitcoinist.com/ethereum-looks-to-reclaim-all-time-high/” rel=”nofollow”>momentum for similar rallyone that could ultimately take ethereum to an unprecedented price of $8,000.
eth Long-Term Holders Await Renewed Rally Towards New All-Time Highs
Reaching the $8,000 price target would see ethereum trade at new highs and 64% above its current all-time high of $4,878. Although this outlook is based on parallels with the 2021 rally, the factors that could drive eth in the current cycle are very different than then. ethereum's rally in 2021 was fueled by interest in decentralized finance (DeFi), non-fungible tokens (nft), dApps, and smart contracts, of which eth was at the forefront.
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Recent market dynamics place factors such as institutional demand and <a target="_blank" href="https://bitcoinist.com/bitcoin-etfs-see-226-million-outflows-while-ethereum-gains-130-million-signs-of-coming-altseason/” rel=”nofollow”>ETF Spot ethereum entries as the main drivers of any projected ethereum price rally at this time.
In this context, on-chain data shows that ethereum has <a target="_blank" href="https://x.com/intotheblock/status/1873368615459627377″ rel=”nofollow”>attracted more long-term holders in 2024 <a target="_blank" href="https://bitcoinist.com/ethereum-hodler-ratio-surpassed-btcs-in-2024-will-history-repeat/” rel=”nofollow”>compared to bitcoin. As things stand, around 75% of eth holders qualify as long-term holders, with many of them anticipating eth moving 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
