Despite Ethereum’s impressive 46% increase since the beginning of 2024, December has been marked by a significant correction. The cryptocurrency saw a noticeable decline from a peak of $4,000 in the middle of the month and is currently consolidating below $3,400.
Crypto analyst Trader Tardigrade has shared a bullish outlook for Ethereum amidst this consolidation phase. He predicts a surge to $8,000 sometime in 2025.
Historical Patterns Point to Bullish Trajectory for Ethereum
Trader Tardigrade, known for his long-term market trend analysis, has highlighted Ethereum’s potential for growth. According to his technical analysis, Ethereum is currently in the final stages of consolidation before embarking on a strong upward movement. Despite facing resistance at the $4,000 level, Trader Tardigrade remains confident in Ethereum’s ability to reach $8,000.
The foundation of Trader Tardigrade’s analysis lies in Ethereum’s weekly candlestick chart, drawing parallels with the previous market cycle between 2018 and 2021. He believes that Ethereum’s current consolidation phase is setting the stage for a significant rally, similar to the explosive growth seen in 2021.
ETH Long-Term Holders Anticipate New All-Time Highs
If Ethereum reaches the $8,000 price target, it would be trading at new all-time highs, representing a 64% increase from its current peak of $4,878. While the outlook is based on historical patterns, the driving factors behind Ethereum’s current rally are different from those in 2021. Institutional demand and inflows into Spot Ethereum ETFs are expected to be the main catalysts for Ethereum’s price surge.
On-chain data shows that Ethereum has attracted more long-term holders in 2024 compared to Bitcoin, with around 75% of ETH holders anticipating a move above $5,000 in 2025.
Currently, Ethereum is trading at $3,354, and a potential move to $8,000 would represent a 140% increase from the current price level.
Featured image created with Dall.E, chart from Tradingview.com