2021-10-23 00:04:21

Why Ethereum Could Hit The $12,000 Mark Before The End Of This Cycle

Price prediction for assets like Ethereum is a tricky one. This is because there is no sure way of telling where the market might turn after a massive rally. Analysts have now turned to the charts to try to use technical analysis to tease out where they think the price of the asset could be in the coming months. With less than two-and-a-half months to go in the year, the asset has a limited time to hit the sometimes optimistic price targets that analysts set for it.

One of the analysts that sees a particularly bullish future for Ethereum is Justin Bennett. Bennett put forward a technical analysis in the 96th issue of his newsletter. With ETH breaking the $4,000 mark this week, all bets look to be off for where the price of the digital asset might end up. The analyst although sees a situation where the price of Ethereum could touch $12,000 this cycle.

Bitcoin Is The Key

Ethereum and the broader crypto market have always followed the price of bitcoin and Bennett does not see a deviation from this trend. With the current market movement, the analyst said in his newsletter that indicators show that the price of the pioneer digital currency could reach as high as $200,000 before the current cycle is over. If the asset hits this price point, the price of ETH is sure to rally over 300% in response to this.

Related Reading | Bullish: Number Of Ethereum Addresses Holding 1+ ETH Reaches New All-Time High

For the $12,000 price range, the ETHBTC levels hold all the information. A $200,000 rally in BTC would put Ethereum at $12,000 with the current ETHBTC levels, says Bennett. In addition, the analyst sees the price of ETHBTC rallying before this bull market ends.

ETH maintains above $4,000 as market loses steam | Source: ETHUSD on TradingView.com

It is an interesting outlook considering that most other analysts have gone the way of more ‘conservative’ $100,000 and $5,000 price ranges at the end of 2021. But Bennett’s analysis carries as much merit as other predictions are given so far in the market given that there is no one way to accurately predict the market movement.

Ethereum Between $15,000 And $20,000 Is Likely

Bennett goes even further in his analysis to put Ethereum at an even higher price point by the end of the cycle. However, like the previous analysis, it sits on the shoulders of what bitcoin’s price ends up.

Related Reading | Why Grayscale’s CEO Believes The SEC Will Greenlight An Ethereum ETF

The analysts explain that a close above $4,372, the record previous high for Ethereum, will trigger a price discovery n the digital asset. If the price of bitcoin can break above $200,000 before the cycle ends, then Bennett puts the price of ETHUSDT between $15,000 and $20,000.

Ethereum has recently come incredibly close to its previous all-time high but has seen significant resistance to breaking its previous all-time high. Trends suggest that the asset may touch a new all-time high before the close of the weekend. If that happens, then it is only a matter of waiting to see what happens.

Featured image from NewsBTC, chart from TradingView.com

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