Ethereum (ETH) has shown strong growth from $2,400 to $3,700 in recent weeks. This surge has caught the attention of traders and investors, increasing optimism about the future of ETH.
According to an analyst at VentureFounder, Ethereum is poised for even greater growth, possibly to $7,346. Despite the optimistic forecast, ETH’s fundamentals are a bit unstable due to concerns about the behavior of long-term holders and market volatility.
The price is expected to grow strategically
Venturefounder analyst believes that Ethereum is now forming a triangular “cup and handle” consolidation pattern. This pattern often indicates future price increases. If Ethereum successfully breaks the $3,800 resistance level, it could target $7,346. This would represent a 97+% increase from the current price. The pattern suggests that a sustained rally is possible, but only if ETH confirms a bullish breakout and continues to gain momentum.
However, the pattern is not yet fully confirmed, and Ethereum’s path forward depends on its ability to break through the $3,800 resistance. Until this happens, Ethereum will remain in a consolidation phase. A breakout could be a catalyst for further price growth.
Cup and handle pattern. Source: vrenutrefounder
However, there are concerns about the reserves of long-term holders (LTH), which are measured by the Liveliness indicator. It shows whether long-term holders are selling or accumulating Ethereum.
The growth of the metric indicates that LTH is being sold. This could indicate a bearish trend or a change in market sentiment. In contrast, a decline in Liveliness suggests that long-term holders are accumulating or holding ETH, reinforcing the bullish outlook.
Right now, the uncertainty of the LTH sentiment is a concern. If the Liveliness indicator continues to rise, it could mean that long-term holders are selling the asset. This behavior could destabilize growth and delay a possible price jump. Therefore, LTH behavior remains an important factor to monitor.
ETH Forecast: Targeting All-Time High
Ethereum is now holding just below the important resistance at $3,800. If ETH manages to break through this threshold, it could begin a 97% rally towards $7,346, as suggested by the cup and handle pattern.
However, the price needs to consolidate above $3,800 for a possible price increase to become a reality.
A break of $3,800 is also key to breaking $4,000, the current high this year. This will boost the confidence of retail holders and attract the interest of institutional investors.
If the Liveliness metric continues to rise and long-term holders sell, the bullish scenario could be in jeopardy. Extended selling could push the price down to $3,327. This would reverse the current bullish outlook and delay the expected rally.
Stay informed! Subscribe to World Stock Market in Telegram.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
