The price of Ethereum was not immune from the sharp decline that swept the broader cryptocurrency market over the weekend. Selling pressure intensified by Monday, pushing the second-largest cryptocurrency to a low around $2,150.
Nonetheless, some analysts are confident that Ethereum's long-term structure will still result in significantly higher prices.
Ethereum price forms long-term breakout pressure
Ethereum price is moving sideways on the weekly chart within a compression pattern that has been forming for about four years, according to analysis shared by market commentator Bitcoinsensus on social media platform
With these expanded integrations, analysts can assertOnce the range is resolved, pressure is building for a major breakout. Based on these long-term patterns, Bitcoinsensus suggests that ETH could eventually target the $7,000 per coin level.
The current price at the time of this writing is approximately $2,337, so this move would represent a profit of approximately 200%. However, there are also caveats to the analysis.
Despite the optimistic long-term outlook, the price of Ethereum may not rise in a straight line. The analyst warned that the price may first revisit the lower limit of the compression channel near $1,700 on the weekly chart.
When that scenario unfolds and is psychologically significant. $2,000 support If the level is not maintained, the Ethereum price could face a further decline of around 27% before finding stronger demand.
This decline would further widen the gap between the current price and Ethereum's all-time high of $4,946 set last year. Currently, ETH remains approximately 53% below its peak.
next stage of growth
In addition to chart patterns, other analysts point out fundamental factors that could support Ethereum price in the long term. Recently reportAnalysts at The Motley Fool outlined several potential catalysts they believe could push ETH higher this year.
They argued that the growth could be driven by increased network usage as well as increased interest among institutions and corporate treasuries seeking exposure to digital assets.
One potential driver is expanding adoption across the blockchain sector. Analysts have noted progress on stablecoin legislation and growing interest in real assets (RWAs). Tokenization It could be a turning point for the entire industry.
Staking is another area that could strengthen Ethereum’s appeal. Ethereum, a proof-of-stake network, allows holders to earn rewards by locking up their tokens. Currently, most spot Ethereum exchange-traded funds (ETFs) do not offer staking rewards, but this could change.
Last December, BlackRock filed paperwork for a staked Ethereum ETF with the U.S. Securities and Exchange Commission (SEC), a move that analysts believe could open the door to broader participation in staking through a regulated investment product.
evolution layer 2 network It is also seen as a potential tailwind. Analysts expect a combination of technology upgrades, economic incentives, and community-driven initiatives to address what they describe as an imbalance in value between base layer and layer 2 networks.
Featured image from OpenArt, chart from TradingView.com
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