Ethereum’s native token, Ether (ETH), has been mirroring the breakout trend of XRP in November 2022, which resulted in a massive price boom. If history repeats itself, ETH could be on its way to hitting new highs, potentially pushing the price towards $7,600.
The XRP Breakout Trend: A Parabolic Rally
In November 2022, XRP broke out of a symmetrical triangle pattern that had formed over six years. This breakout triggered a parabolic rally from around $0.50 to over $2.94. The $2.94 level aligns with XRP’s 1.618 Fibonacci retracement level and was serving as resistance as of December 7, 2022.
The ETH Breakout Trend: A Similar Pattern Emerges
Ethereum is undergoing a similar breakout trend as XRP’s. In the week ending December 8, 2022, the cryptocurrency has broken above the upper trendline of its three-year-old symmetrical triangle pattern. If Ether price repeats XRP’s parabolic trend, it will likely climb towards the 1.618 Fibonacci retracement level at around $7,636. This would represent a massive 90% rally by December 2024 or January 2025.
Technical Analysis: ETH’s Relative Strength Index (RSI)
ETH’s weekly relative strength index (RSI), currently at around 67, further suggests that there is still room for further upside before the market reaches an overbought threshold of 70. It was around the same level ahead of XRP’s price boom.
Market Analyst Predicts ETH Price Target: $15,937 by May 2025
Market analyst ‘VentureFounder’ predicts an "impulse breakout" next for Ethereum in the coming months. The analyst noted similarities between Ethereum’s current setup and its 2016-2017 cycle, predicting a repeat of the explosive move that propelled ETH to new highs during that period.
ETH Price Target: $15,937 by May 2025
VentureFounder’s ETH price target is $15,937 by May 2025, which would push Ethereum’s market capitalization above $1 trillion for the first time in history. For this bullish scenario to play out, the analyst emphasized the importance of Ethereum holding $3,800 as weekly support.
Successfully Maintaining Weekly Support
Successfully maintaining this level would increase the likelihood of retesting ETH’s all-time high of $4,878 in the short term, with further upside to follow.
Ethereum ETF Net Flows: A Steadily Increasing Inflow
Ether’s bullish outlooks appear amid a steadily increasing inflow into US-based spot Ethereum exchange-traded funds (ETFs), marking a sharp reversal from the net outflows observed during their initial launch phase. As of December 6, these funds held approximately $1.42 billion worth of Ether under management, a significant increase from $123 million on November 22.
A Bullish Outlook for ETH
Ether’s bullish outlooks are further supported by the steady increase in inflows into US-based spot Ethereum exchange-traded funds (ETFs). This trend suggests that institutional investors are increasingly taking notice of Ethereum and its potential for growth.
Conclusion: A Price Boom on the Horizon?
Ethereum’s breakout trend, mirroring XRP’s November breakout trend, has the potential to push the price towards $7,600. The technical analysis suggests that there is still room for further upside before the market reaches an overbought threshold of 70. Market analyst VentureFounder predicts a repeat of Ethereum’s explosive move in the coming months, with a price target of $15,937 by May 2025.
Disclaimer: No Investment Advice
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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