3 Reasons Ethereum Will Hit $10K in the Next Bull Cycle
Ethereum's native token, Ether (ETH), looks set to rise to $10,000 in the coming months.
2023-2024 price fraction hints more ETH price up
According to Julian Bittel, Head of Macro Research at Global Macro Investor, the first compelling reason behind Ethereum's $10,000 target is the similarity to past price fluctuations between January 2023 and March 2024.
The 2023-2024 fractal (black) saw the price of ETH strengthen between $1,500 and $2,000 before breaking out towards $3,500. The current price action (red line) closely follows this pattern, indicating a previous level of consolidation.
ETH/USD price trends for January 2023—March 2024 compared to now. Source: Julien Buttel
In the year If the price continues to move in the same direction and at the same speed as seen between January 2023 and March 2024, Ethereum could see a major crash. Bittel shows that as an achievable year-end target for ether bulls.
Another fib analysis points to $10K Ethereum
The second key motivation behind Ether's potential to reach $10,000 comes from the long-term Fibonacci retracement graph, exponential moving averages (EMA) and relative strength index (RSI) from another segment on Ethereum's weekly chart.
Historically, ETH's price action shows similarities between the 2017–2018 and 2020–2021 bull runs, where sharp corrections followed parabolic growth.
In the current setup, if ETH follows the same direction, the 2022 low of $1,080 will mark the 1.618 Fibonacci extension at $6,978 and the 2.618 extension at $10,623.
ETH/USD 1-week candlestick chart. Source: TradingView
Ethereum's weekly chart shows that it is currently trying to retrace the 50-week EMA at $2,749, while the 200-week EMA at $2,104 is historically below major corrections. Meanwhile, the RSI is neutral at 46, far from overbought, suggesting room for further upside if momentum reverses.
If Ether recovers key levels and gains momentum, it may hit targets like $6,978 and possibly $10,623 following historical fractal patterns and technical indicators.
M2 money supply growth is good for Ether
A third reason for Ethereum's potential $10,000 price is broader macroeconomic trends, particularly global M2 money supply growth.
As shown in the second chart, the price of Bitcoin has historically moved in response to changes in M2 money supply growth from major central banks such as the Federal Reserve, the European Central Bank, and the Bank of Japan.
M2 global supply versus Bitcoin price performance. Source: MacroMicro.me
From 2011 to 2020, Bitcoin saw significant price gains during a period of heavy M2 expansion, due to inflationary concerns and increased liquidity. In the year While 2022 will see M2 growth contract, 2024 will show the first signs that central banks will ease monetary policies in response to economic uncertainty.
Related: Bitcoin Targets $70K As Stable Coin Earnings And China Stimulates Rally
As Bitcoin and Ethereum share a positive correlation, a renewed Bitcoin price amid global liquidity expansion could boost Ethereum, making $10,000 a realistic target.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
