Key Points
- The Ethereum price surge above $3,700 sparks hope for a rally similar to Bitcoin’s 45% increase.
- Analysts predict Ethereum could approach the $10,000 mark by the end of this rally.
The recent surge in the price of Ethereum (ETH) above $3,700 has sparked significant optimism.
Expectations are high for a rally that could see the price rise to $4,000 in the short term and potentially even reach a new all-time high.
Ethereum and Bitcoin: Parallel Price Movements
Interestingly, the current ETH price chart bears a striking resemblance to the Bitcoin (BTC) price chart prior to its 38% rally in November.
The three-line break chart for Ethereum, which smooths out daily price fluctuations, suggests an 8-month corrective trend has ended.
This could potentially lead to a bullish chain reaction, attracting new buyers and forcing out sellers who have been suppressing price rallies during consolidation periods.
Bitcoin demonstrated a similar breakout in mid-October, which triggered a rally that led it to a new all-time high of $73,000.
Since then, the BTC price has surged by 45%, reaching over $96,000.
Supporting Factors for Ethereum’s Bullish Outlook
The recent activity on the Ethereum network also supports the bullish outlook for ETH.
The number of “blobs” posted by layer 2 protocols on Ethereum saw a sharp increase in November, which incurs fluctuating fees paid in Ether.
These fees are burned, similar to regular transaction fees, reducing the overall supply of ETH in the market and creating an upward pressure on the Ethereum price.
Predictions for Ethereum’s Price Rally
While Ethereum has yet to cross the immediate resistance of $4,000, calls for its rally to $10,000 have already begun.
Crypto analyst Titan of Crypto suggests that the ETH price could reach new highs, potentially between $7,800 and $9,900.
Historical trends indicate a potential top near the 141.40% Fibonacci extension, which previously marked the peak in the last cycle.
If history repeats itself, some analysts believe Ethereum could approach the $10,000 mark by the end of this rally.
However, Ethereum has recently faced strong rejections at $3,700.
Thus, securing a daily close above this level is crucial to meet the immediate target of $4,000.
On the other hand, inflows into spot Ethereum ETFs have picked up pace over the last week of November, seeing more than $550 million in weekly inflows.
Last Friday, the daily inflows in spot Ethereum ETF surpassed the inflows of Bitcoin ETFs for the first time since inception.
