Is Ethereum going to reach 10,000 mg?

As the market enters October, the recent trend of Ethereum ($ETH) has been catching up with Bitcoin. Many analysts predict that the price of Ethereum will reach the peak of this cycle in January 2025. It is expected that Breaking $10,000.

Can Ethereum break $10,000 before 2025? What are the key catalysts behind the price increase?

These analysts' forecasts are not exaggerations, but are supported by factors such as historical trends, long-term technical patterns, and favorable macroeconomic trends. Let's see what the analysts have to say.​

Bullish Trend: Same Pattern Brings Upward Momentum

Julien Bittel, head of macro environment research at Global Macro Investor, shared a chart in which he said that the price trend (red line) shown by Ethereum ($ETH) since the beginning of 2024 is consistent with the trend from January 2023 to March 2024. (black line) are highly similar.​

Image Source: Julien Bittel Ethereum Price Trend Comparison: 2023-2024

Julien Bittel pointed out that during the period from 2023 to 2024, Ethereum price once consolidated between $1,500 and $2,000 before breaking out to $3,500.​

If the current trend continues, Julien Bittel believes that Ethereum is expected to repeat this pattern by the end of the year and rise along the same pattern. The next target will not only break through $4,000, but may even have a chance to break through the $10,000 mark within a few months. .​

Long-Term Technical Patterns: Fibonacci and EMA

The second key catalyst comes from 2 types of technical analysis - Fibonacci retracement and the exponential moving average (EMA).​

Judging from the historical trend, whether it is the bull market of 2017-2018 or the bull market of 2020-2021, Ethereum has faced a large correction after a rapid parabolic rise, and ushered in a strong rebound after each correction. Hit a new high.​

Image source: TradingView Ethereum weekly chart

Analysts pointed out that if Ethereum follows the trend of the previous two bull markets, the rebound of this cycle has already started from the 2022 low of $1,080, and the Fibonacci extension line of 1.618 will push Ethereum to a peak of $6,978 , even reaching the Fibonacci 2.618 extension line at $10,623.​

In addition, the current 50-week EMA and 200-week EMA of Ethereum are located at $2,749 and $2,104 respectively. This is an important support and adjustment area for Ethereum this round. If Ethereum can remain above these two key positions, Then the next step is likely to be a strong rebound.​

Macro environment: M2 money supply

The third reason that may support Ethereum ($ETH) rising by $10,000 is the growth of the global M2 money supply. This is a loose monetary policy implemented by various countries in response to inflation and economic recession, which will cause the market to Liquidity increased significantly.​

According to historical data, the price changes of the two major cryptocurrencies, Bitcoin ($BTC) and Ethereum ($BTC), are highly correlated with changes in the M2 money supply. From 2011 to 2020, the price of Bitcoin has followed Rising sharply with the increase in M2 supply.​

Image source: MacroM2 Money supply growth

Analysts pointed out that since 2024, central banks in various countries have chosen to gradually relax monetary policies after facing the pressure of economic recession, which is expected to increase future market liquidity. As the global money supply grows, Bitcoin serves as an anti-corruption currency. The attractiveness of expanding assets will also increase.​

Given the positive correlation between Bitcoin ($BTC) and Ethereum ($ETH), higher Bitcoin could also be one of the catalysts that could push Ethereum towards $10,000.​

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.