Ethereum to Hit $17K? Analyst Draws Parallels with 2020 Rally

A recent analysis by a crypto expert signals a potential upswing for Ethereum , forecasting an impressive climb to $17,000. The analyst supports this optimistic outlook by noting Ethereum's historical pattern of significant rebounds after periods of downturn.

According to the analyst, known as Kiu_Coin, the current phase marks the beginning of an Ethereum renewal, offering opportunities for price reversals and investments. Recently, Ethereum’s movement has been largely horizontal, experiencing notable declines that the analyst terms a "shakeout."

Historically, Ethereum has shown a pattern of such shakeouts followed by substantial price increases. A shakeout occurs when a cryptocurrency’s price suddenly dips, prompting weaker market participants to sell off their holdings before a price recovery. Kiu_Coin’s analysis indicates a similar shakeout occurred around 2020, preceding the bull market's dramatic uptick in 2021, which saw Ethereum reaching new all-time highs after a remarkable 1,310.6% surge.

Currently, Ethereum trades at approximately $2,637, facing a shakeout akin to the one in 2020. Despite other altcoins gaining ground in recent months, Ethereum has battled with price volatility and stagnation. This bearish trend has triggered significant investor sell-offs. If past patterns hold true, Kiu_Coin suggests that, post-decline, Ethereum could break out to attain new price heights.

The expert’s projection indicates a potential rise to the $17,000 mark, signifying a 732% increase over the next seven months. Support levels are identified at $2,173 and $2,069, serving as potential buffers against further price drops.

At present, Ethereum is underperforming, with its value slipping below $3,000, contrary to broader market expectations. Though most altcoins have shown year-to-date gains, Ethereum has seen a modest increase of just 5%, according to CoinMarketCap. Over the last month, Ethereum's value dipped by 18.5% due to market volatility and Bitcoin's sudden value decrease. Despite these challenges, ETH’s 24-hour trading volume has risen by 20.9%, reaching $19 billion.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.