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Over the weekend, the Ethereum price broke above $4,900 to mark a brand-new all-time high after a choppy four years. Naturally, this has resulted in heightened volatility strengthened by both buying and sell-offs, as investors tend to take profit during levels like this. The next step is for Ethereum to step into price discovery as it leads to higher highs in the coming months, with analysts already expecting it to cross the $10,000 level.
Previous Cycle Performance Points To 5-Figure Levels
In an analysis, TheSignalyst points out how the Ethereum price has performed historically. This has usually started with the price spending years in a consolidation zone as it bleeds out. This often ends in a breakout that sees the altcoin break its previous all-time high.
This was the case back in the 2018 bear market, where the Ethereum price consolidated for around three years before reaching an end. It will eventually break the $1,400 all-time high of the previous bull cycle in 2021. What followed was an explosive rally that saw the ETH price rise over 250% from its previous all-time high to put in a new high of $4,800 before cooling off.
Taking this previous performance into account, it is possible that the Ethereum price could follow this same trend. This is due to the similar consolidation pattern before a break of the previous all-time high levels. The breakout of this extended range is inherently bullish and could suggest that history may not be repeating, but it could rhyme.
Source: TradingView.com
How High Can The Ethereum Price Go?
Taking into account the Ethereum price performance after breaking out of the extended range in 2021, it is possible that the altcoin will break $10,000 into the 5-digit range. A more than 250% increase from its all-time high, like the 2021 cycle, would mean that the price would rally to the $17,000-$18,000 range.
“ETH hitting new highs signals strong ecosystem demand and potential altcoin season, driven by Powell’s unexpectedly dovish speech fueling risk-on trades,” Bitget Research Analyst, Ryan Lee, said. “On-chain data shows whales selling BTC to buy ETH, boosting ETH’s momentum. This macro easing and capital rotation should drive both assets higher, with ETH likely outperforming due to its utility and ETF prospects.
Now, even taking a more conservative stance that the Ethereum price would only rise around 100% from its previous all-time high of $4,800 would put the price very close to $10,000. Either way, an explosion into another bull market suggests that Ethereum would likely see the 5-digit range this cycle.
TheSignalyst states that “Cycles may not repeat perfectly, but they often rhyme — and Ethereum’s structure suggests we could be on the verge of another explosive move.” Usually, the most important moves for Ethereum have happened in the month of November. Thus, the next three months could be very eventful for the altcoin.
ETH price reclaims $4,600 | Source: ETHUSDT on TradingView.com
Featured image from Dall.E, chart from TradingView.com
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