Ethereum's price structure is now very similar to the Dow Jones’ 1980 rally. This hints at a possible surge to $8,000.
A breakout above $4,000 could trigger a bullish continuation that helps ETH to reach $10,000.
Technical indicators support the bullish case, alongside ETF inflows, strong macroeconomics and an ongoing increase in first-time buyers.
Ethereum’s native token is showing signs of a major price breakout that could push it toward the $8,000–$10,000 range very soon. According to recent insights from crypto analyst Gert van Lagen, Ethereum’s current price pattern strongly resembles the Dow Jones’ 1980 bull run.
Gert van Lagen said, that Ethereum has been in a “textbook expanding diagonal” or broadening megaphone pattern. Not only this, the analyst also notes that Ethereum has followed this pattern since mid-2022.
Each major bounce from the lower trendline of this formation has triggered powerful rallies, including the 245% gain between November 2022 and February of last year.
Van Lagen’s analysis is based on the Elliott Wave Theory, which divides market cycles into five stages. By this, he means that ETH is currently in the fifth wave, which is known as the blow-off top.
This tends to be where momentum builds, volatility spikes and prices soar as late buyers rush into the market.
In essence, if this plays out as expected, ETH could reach the upper boundary of the megaphone pattern around the $8,000 zone by early next year.
Beyond long-term patterns, Ethereum’s near-term technicals are also pointing upward. The cryptocurrency appears to have reclaimed a multi-year ascending trendline and is now consolidating inside an ascending triangle.
Ascending triangle on Ethereum | Source: TradingView
The current resistance zone lies between $3,900 and $4,150. This means that a move above could kickstart as much as an 80% price jump.
Such a jump would likely take Ethereum towards $7,150, which coincides with the upper boundary of the megaphone.
While technical patterns are driving much of the excitement, macroeconomic factors are also lining up in Ethereum’s favor.
For example, as inflation cools and the economy slows, the U.S. Fed may start to cut its interest rates. Lower rates tend to boost risk assets like crypto, as investors seek higher returns than what mainstream markets can offer.
In addition, with Ethereum-based ETFs gaining ground, institutional interest has been on the rise lately. Stronger inflows into these financial products may help to stabilize demand and add more buy pressure to ETH.
Finally, according to Glassnode, the number of “first-time” ETH holders has jumped by 16% since early July. This shows that a wave of fresh money is entering the market, which is another strong bullish signal.
Another technical pattern supporting Ethereum’s rise to the upside is the Parallel Channel formation on its 1-week price chart, as analyzed by Ali Martinez.
According to the analyst, ETH has traded within this sideways channel for the past two years. It recently bounced off the lower trendline and is now closing in on the upper boundary near $4,000.
Historically, ETH has failed to break this level on three separate occasions. However, if it succeeds this time, the results could be massive.
Parallel Channel breakouts often move in the direction of the breakout by a distance equal to the height of the channel. This means that in Ethereum’s case, that points to a price target of $10,000.
“If Ethereum can break past $4,000, we could be looking at $10,000 next,” Martinez stated.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.