According to fresh analysis released on July 17 by anonymous cryptocurrency analyst, Ethereum may be nearing the end of a long-term bullish pattern that eventually sees it reach as high as $22,000. While the projection is highly speculative, it has contributed to an escalating discussion regarding whether ETH’s June lows signified the commencement of a more extensive recovery. According to a chart shared by a market watcher on X, since 2021, Ethereum has been developing what technical analysts refer to as an expanding diagonal, characterised by five waves, with each subsequent wave surpassing the previous one in size. They indicated that the initial four waves had already been completed, with the fourth wave establishing support within the range of $1,072 to $1,385.
That’s the floor this entire structure was building toward’, NoName explained, noting that expanding diagonals frequently culminate in a fifth wave that surpasses the prior cycle high. They also compared ETH’s structure to a historical Dow Jones Industrial Average fractal, noting that both charts exhibit a similar formation and could potentially yield a comparable breakout. Based on that interpretation, the projected target ranges from $12,000 to $22,000. They also characterised ETH as “one of the most underpriced assets on the market” at present, indicating that a significant number of individuals had lost faith in it, which could present a favourable opportunity for long-term investors.
Another analyst, arrived at a comparable conclusion employing an alternative framework. In his analysis, he stated that Ethereum has been adhering to a Wyckoff accumulation pattern that could potentially elevate the asset to $10,000 by 2027 or 2028, contingent upon the recent swing low around $1,500 remaining intact. The trader also identified resistance between $2,400 and $2,600, labelling it as the first significant obstacle that the world’s second-largest cryptocurrency must surmount before any substantial increase in its price can commence. CryptoQuant contributor CW8900 also struck an optimistic note, sharing data showing that Ethereum wallets holding more than 100,000 ETH have returned to profitability following the latest rebound. He asserts that whales have only experienced losses during significant market bottoms, and their return to profitability on numerous occasions has aligned with either a prolonged rally or a substantial short-term recovery.
In June, ETH approached the $1,500 threshold; however, the release of softer-than-anticipated US inflation data this week contributed to a rise, reaching its peak in a month and a half at $1,940, before sellers subsequently pulled it back below $1,900. At this time, data indicated that the asset was trading near $1,800, reflecting a decline of approximately 5% over the past 24 hours, yet it remained up more than 3% for the week. However, despite the recent gains enhancing sentiment, the market is not uniformly aligned. Analyst suggests that a recurring 1,369-day cycle indicates a potential scenario in which ETH may decline below $1,500 prior to establishing a sustainable bottom.