Ethereum’spricecouldbepoisedforahistoricrally,accordingtocryptocurrencyanalystswho,usingtechnicalanalysis,pointedtoarisetoasmuchas$10,000perETH,upfromthecryptocurrency’scurrent$2,570pricetag.
InapostonthemicrobloggingplatformX(formerlyknownasTwitter)totheirover60,000followers,analystTraderTardigradepredictedEthereum’spricecouldhita$10,000highafterbreakingoutofanascendingtrendlinepatternformedwithsymmetricaltriangles.
ThetradernotedthatthefirsttimeEthereum’spricebrokeoutofsuchastructureifmovedup70%,whilethesecondtimeitdid,itwentup140%.Ifathirdbreakoutdoescome,theanalystwrote,basedonitspreviousincreasesandthegrowthineachincrement,itcouldseea280%priceriseto$10,000perETH.
#EthereumisplayingontheAscendingTrendlinewithSymmetricalTriangles🔥
Thefirstbreakoutofthesymmetricaltriangleled$ETH+70%.
Thesecondbreakoutofthesymmetricaltriangleled$ETH+140%.
ItcomestothethirdBREAKOUTrightnow.
Byprojecting2timesmorethan…pic.twitter.com/7MEp8eqhgD—TraderTardigrade(@TATrader_Alan)October21,2024
Asymmetricaltrianglepatternisformedbydrawingtrendlines,onefallingandanotheronerising,alongaconvergingpricerange.Toconfirmavalidbreakandnotafalseone,tradersshouldlookforasurgeinvolumeandatleasttwoconsecutiveclosesbeyondthetrendline,accordingtoInvestopedia.
Symmetricaltrianglesusuallyindicatethatthepricewillcontinueinthesamedirectionasbeforethetriangleformed.Therefore,traderswouldexpectthepricetobreakupwardifasymmetricaltrianglefollowsanuptrend.
AsCryptoGlobereportedearlierthismonthMatthewSigel,HeadofDigitalAssetsResearchatglobalinvestmentfirmVanEcknotedthefirm’s$22,000pricetargetforETHisfor2030,butacknowledgedthatEthereum’schangingfundamentalssuggestthatanupdatetotheirvaluationmodelisnecessary.
Sigelexplainedthattheiroriginalmodelassumeda50:50splitintotalvaluelocked(TVL)betweenEthereumandL2s,aswellasa50:50splitonmaximumextractablevalue(MEV),whichtheyestimatedat0.10%ofTVLannually.
Perhiswords,there’samajordiscrepancyinthesplitoftransactionrevenuebetweenEthereumandL2s.Whiletheoriginalmodelassumeda90:10splitinEthereum’sfavor,theactualsplitoverthepastfourmonthshasbeen10:90infavorofL2s.
SigelsaidthatthisshiftdemonstratesthatL2saretakingsignificantlymorevaluefromEthereumthaninitiallyexpected.Hewentontosaythatifthis10:90splitremains,VanEck’spricetargetforETHwoulddropbytwo-thirds.
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