The second-largest cryptocurrency by reported market cap, Ethereum, is showing signs that it might rally to $2,000 before one final capitulation event that will ready it for the next bull run – which could potentially catapult the digital asset to as high as $7,000.
Ethereum needs one more flush before bull run
In an X post published on Monday, crypto analyst Tony Research highlighted that ETH is likely to first rise to the $1,900 to $2,000 range, before experiencing the “true final drop.” The analyst shared the following weekly chart, adding that Ethereum will see 7 to 10 days of huge sell-off after hitting $1,900.
The analyst outlined their strategy of dollar-cost averaging ETH when it hits its cycle low in the $890 to $1,260 range. For ETH to fall to such a price level, it would have to record a pullback of at least 30 percent from its prevailing price of around $1,740.
Tony Research added that following the aforementioned price dump to as low as $890, ETH will finally embark on a new bull run that will propel its price to as high as $7,000. To recall, ETH last traded around the $900 area way back in December 2020.
Crypto analyst Oliver Charts echoed Tony Research’s outlook toward ETH. They shared the following Ethereum monthly chart, suggesting that the cryptocurrency is likely to fall below the psychologically important $1,000 level before resuming an upward move.
Meanwhile, fellow crypto trader Michael van de Poppe shared his analysis on ETH’s recent price action. In an X post, Poppe noted that ETH is still primed for a run to $2,500.
Although the digital asset has so far failed to break through the resistance around $1,820, multiple taps at the level indicate that it is likely getting weaker, and more susceptible to getting breached.
Trading, institutional interest firm in ETH
Despite the worsening investor sentiment in ETH over the past few months, institutional and trading interest in the digital asset stands strong. On Wednesday, Ethereum treasury firm Bitmine scooped another 40,000 ETH to bolster its reserves.
Trading interest in ETH remains strong too. On Tuesday, exchange data from Binance showed that ETH liquidity efficiency had hit a multi-week high on the trading platform. That said, on Thursday, ETH flashed a warning signal that could lead to a 30 percent price correction.
