Key Ethereum Takeaways:
- Analysts believe Ethereum could hit $13,000 according to technical indicators.
- There are other factors on the market, favoring the alpha altcoin.
YEREVAN (CoinChapter.com) – Ether, the native cryptocurrency of Ethereum—the second-largest blockchain by market cap ($395 billion), surged 7.5% in the last seven days.
In detail, the ETH price reached $3,491 on Sunday before correcting to $3,358 in the Asian-Pacific session Monday. And now, analysts suggest that the alpha altcoin could reach as high as $13,000 or more by the year’s end.
Analysts weigh in
Benjamin Cowen, a crypto analyst with a vast social media following, and Michael Van de Poppe, the founder, and CEO of consultancy and educational platform Eight Global, voiced their opinions on Ether’s future price action. They set the target at approximately $13,000, or possibly more.
Mr. Cowen based his analysis on a logarithmic regression. The indicator shows the possible growth rate for an asset based on its past performance. The so-called “regression rainbow” consists of several regressional bands that pinpoint the possible targets for future price action.
According to the analyst, Ethereum could hit the $10,000-13,000 price, not the highest target. The highest regression band runs at approximately $25,000. However, as Bitcoin hasn’t met its target either this cycle, ETH could follow the example.
Mr. Cowen analyzed the regional peaks for each leg up and concluded that the digital asset hadn’t reached its third peak yet.
The analyst also asserted that Ethereum first has to retest the $4,000 level confidently for the scenario to pan out.
Also read: ETH jumps 11% as Ethereum miners continue accumulating despite EIP-1559 activation.
Altcoin season?
Michael Van de Poppe also saw the ETH target at similar highs. He tweeted that he sees the price higher than $15,000, but the altcoin season is “around the corner.”
In hindsight, the altcoin season is the period that is rich with altcoin gains, as opposed to consolidating Bitcoin. As a result, traders focus on higher yields from altcoin investments, while the alpha crypto takes a back seat.
According to a report published by the analytical site CryptoCompare, Bitcoin’s dominance in AUM (asset under management) has declined to the year-low, supporting the altcoin season claim.
AUM in Bitcoin-based products fell 7.8% in September to $35.1bn. On the other hand, Ethereum-based products reached their highest market share of AUM at 25.9%, following a 3.0% decrease to $13.5bn. This movement
read the review.
suggests that investors are seeking alternatives to Bitcoin for cryptocurrency exposure.
Also read: Ethereum bull pennant predicts massive rally ahead as ETH reclaims $3K.
Other bullish factors for Ethereum
Other factors that also support a bullish outlook for Ethereum concern ETH’s ongoing ‘supply squeeze.’
In detail, Ethereum went a critical network, called London Hard Fork, Aug 5, triggering an improvement protocol EIP-1559 that burns a portion of the fees—Base Fee—that the blockchain collects from users. The mechanism has resulted in the burning of 427,260.9 ETH to date (approximately $1.4 billion).
As a result, more Ether tokens have been going out of active supply, making it disinflationary.
Meanwhile, according to analytical platform glassnode, the total value in Deposit Contracts is still on a steady rise and reached 7,837,922 ETH. In detail, users that wish to stake their ETH on the network need to allocate funds to deposit contracts addresses.
According to the report mentioned above, Ethereum’s AUM is on the rise as well. Moreover, Greyscale Ethereum trust became the most traded product in September.
In September, Grayscale’s Ethereum Trust (ETHE) became the most traded digital asset product
detailed the report.
overtaking Grayscale’s Bitcoin Trust (GBTC), the first time ever the fund has been dethroned. ETHE’s
average daily volumes increased 29.0% to $250mn, while GBTC’s average dailyvolumes rose by only 8.6% to $201mn.
Also read: Bitcoin is on its way to $100K in Q4, says executive; 3 reasons why
All the factors listed above and the technical analysis favor a bullish position for Ethereum in the upcoming months. Analysts believe the advance could get as high as $13,000 or more, which would see Ethereum bounce over 288%. The current ETH/USD exchange rate stood at $3,358 in the European session Monday.
