The Potential for Ethereum to Reach $10,000
This week, the crypto market saw a surge in Bitcoin and other altcoins, which may have had a positive impact on the Ethereum price. As ETH moves away from the bottom trend line of a long-term rising wedge pattern, there is speculation that it could reach $10,000 per Ether in the future.
A Look at the Rising Wedge Pattern
ETHUSD has been following a rising wedge pattern for most of its price history. While these patterns are typically bearish and break down 60% of the time, there is still a 40% chance that they break upward. False breakouts and breakdowns are common with wedges, where price violates one trend line before reversing towards the other.
In this case, Ethereum is holding onto the bottom line of the rising wedge. This suggests that the upper trend line, currently around $10,000 per ETH, could be the next target. The timing of when ETHUSD will touch this upper trend line is uncertain, but previous rallies have lasted between six months to a year.
The Diagonal Nature of Wedge Patterns
Rising wedges fall into the diagonal family of patterns according to Elliott Wave Principle. Diagonals can be leading or ending patterns. A leading diagonal initiates a sustained move and breaks upward despite its wedge-like appearance. On the other hand, an ending diagonal concludes a sustained move and results in a bearish breakdown.
Ethereum may be part of a massive diagonal pattern rather than a simple rising wedge. It is unclear whether this is the beginning of a larger sustained move or the end of Ethereum’s dominance as an altcoin. Both patterns follow a five-wave structure with specific rules for each wave. The touch of the upper trend line, potentially the last wave, may be approaching soon.
Hot Take: Ethereum’s Future Hangs in the Balance
Ethereum’s price movement in the coming months will determine whether it continues to rise or faces a collapse. The potential for ETH to reach $10,000 per Ether is an exciting prospect, but it remains to be seen how long it will take to reach this lofty price target. As the crypto market evolves and new patterns emerge, investors must closely monitor Ethereum’s performance to make informed decisions.
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