Ethereum Price Could Surge to $20,000 in Four Months, Predicts Macro Analyst
A macroeconomic researcher has predicted that Ethereum (ETH) could skyrocket to $20,000 within the next four months, driven by the ongoing bullish momentum in the market. Recently, Ethereum has experienced a surge, ending the week with a 4% increase, pushing its price above $2,600. This price movement reflects renewed investor interest, with the next key resistance level set at $2,800.
A Potential Break from Bearish Trends
Ethereum’s price movement signifies a potential escape from the prolonged downtrend that began in March, reigniting optimism among market participants. The latter half of September marked a turning point for Ethereum, setting the stage for a possible continued upward trajectory.
Julian Bittel’s Bold Price Prediction
Julian Bittel, Head of Macro Research at Global Macro Investor, points out that Ethereum’s current trend mirrors its performance from early 2023, indicating that further price gains could be on the horizon. Bittel’s analysis highlights a relatively stable trading range of $1,500 to $2,500 between January 2023 and March 2024. However, he predicts a more pronounced upward movement beginning in September 2024, which could propel Ethereum’s price to $20,000 by January 2025 if this momentum continues.
With Ethereum currently trading at $2,671, this forecast suggests a nearly tenfold increase in the next four months, a bold and ambitious outlook.
Rising Funding Rates Bolster Ethereum’s Bullish Outlook
Supporting the growing optimism is the rise in Ethereum’s funding rate. A report by CryptoQuant on September 25 revealed that Ethereum’s funding rate, which had dipped earlier in the month, has recovered to 0.01 from a low of 0.005. Cheong, Head of Trading at CryptoQuant, observed that this rise in funding rates reflects increasing buying pressure among futures traders, signaling a shift in market sentiment. As buyers continue to show interest, Ethereum’s price could benefit significantly, especially as the broader market shows signs of recovery.
Concerns Amid the Optimism
Despite the positive outlook, some concerns have surfaced due to recent large transactions by Ethereum whales. In the past few days, two major Ethereum whales moved over $53.6 million worth of Ethereum to exchanges, raising fears of potential sell-offs. Blockchain analytics firm Spot On Chain revealed that these substantial transfers were tied to entities associated with Ethereum’s initial coin offering (ICO) and the liquidation of Genesis Trading.
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Notably, one of the largest whale addresses, linked to Ethereum’s 2015 ICO, broke its three-month dormancy, transferring 8,510 ETH, worth $22.15 million, to the Kraken exchange.
Conclusion
While Ethereum’s price shows strong potential for significant gains in the coming months, the market must contend with both rising optimism and the cautious actions of major investors. As the broader crypto landscape continues to evolve, Ethereum’s trajectory remains one to watch, especially as it approaches key resistance levels and faces potential whale-driven volatility.
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