The Ethereum price recently demonstrated a substantial momentum, so that the Altcoin market With a significant increase of 13% in the past week. This increase has brought the cryptocurrency close to all time, which causes a new wave of bullish predictions.
Analysts predict further profits
Market analyst Mags on social media platform X (formerly Twitter), marked An important milestone for the Ethereum price: after 1,146 days of price consolidation, the second largest cryptocurrency of the market eventually broke through the critical level of $ 4,000.
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Historically, Ethereum made three attempts to surpass this threshold, whereby setbacks encountered every time. In August, however, the fourth attempt turned out to be successful and Token has been above $ 4,000 for several months.
Although there was a temporary setback when the price dropped to $ 3,800, Bullish sentiment Return quickly, pushed the Ethereum price back above the level of $ 4,000 and initiating a robust V-shaped recovery.
This technical pattern, according to the analyst, is very bullish for the leading altcoin, in which Mags suggests that the next upward leg could focus on a new record price for $ 7,331, also in accordance with the 1,618 Fibonacci extension level.
Potential Ethereum -Price increase up to $ 10,000
Macro -economic factors also play an important role in Ethereum’s potential for further profit. Analysts at Cryptoquant remark That the American M2 money amount has started a renewed expansion phase and has reached a record high of around $ 22.2 trillion.
Bitcoin (BTC) was the first to reflect this increase, which has been increasing by more than 130% since 2022 and showed a strong correlation with m2 growth of approximately 0.9. The Ethereum rates, on the other hand, have remained behind, risen by only about 15% in the same period, a phenomenon called “liquidity delay” by the analysts.
However, data on chains collected by cryptoquant indicate that this gap can be reduced. Especially from Ethereum Changes have fallen to around 16.1 million ETH, a decrease of more than 25% since 2022.
This suggests a structural decline of the sales pressure, because Netflows remain consistently negative for exchanges, indicating that ETH is withdrawn for self -coasts. Moreover, the Coinbase Premium Index has become positive and renewed interest of American institutional investors is indicated.
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Previous cycles have shown that the Ethereum prize tends to follow Bitcoin during the first stages of monetary relaxation cycles. Still, as Bitcoin’s Dominance Dips below 60%, capital often rotates in the Altcoin market, which leads to an increase in the ETH/BTC ratio.
Cryptoquant analysts claim that this pattern seems to appear again, which indicates that the rest of the year could see a shift from a Bitcoin-oriented market to a driven to a driven by Ethereum and other altcoins.
If global liquidity continues to expand and the trend of the outskirts of stock exchanges continues, the Ethereum price can connect more closely with the growth of M2 and introduce a new phase of revaluation. In such a scenario, the prospect of ETH to reach $ 10,000 is becoming increasingly possible, the analysts added further.
Featured image of Dall-E, graph of TradingView.com