Glassnode Co-founders, analysing historical data and market patterns, predict Ethereum to potentially reach $7,500 based on technical analysis and a bullish trend similar to early 2021. The forecast highlights the significance of surpassing critical resistance levels and market interest in the anticipated launch of ETH spot ETF trading.
Glassnode Co-founders, under the alias ‘Negentrophic’ on Elon Musk’s X platform, have forecasted that Ethereum (ETH) might reach $7,500 despite its recent lackluster performance. This prediction is rooted in analyzing historical data and market patterns similar to early 2021, focusing on the 161.8 Fibonacci extension level.
The forecast from Negentrophic draws parallels to a significant rise in Ethereum seen in 2021, where a similar Fibonacci extension indicated a bullish trend. Currently, Ethereum’s chart shows a developing bull flag pattern, which typically suggests a continuation of a bullish trend. This technical analysis dovetails with increased market interest and the anticipated launch of ETH spot ETF trading.
Reaching the $7,500 target involves surpassing critical resistance levels, notably the $4,000 mark aligned with the 1.618 Fibonacci extension from the previous cycle. Successfully overcoming this hurdle would confirm a bullish market structure, as remarked by Negentrophic:
“We believe Market moves in structures. And this structure gives us a target at ~7500 as a Final High for ETH. That’s the 161.8% Fib-extensions from the structure, we currently see developing. That would mirror the Fib-extension we saw back in 2021. And it would also imply a strong rally in ETH to set in… soon!”
While Ethereum has shown recovery signs, rising from lows below $3,300 to about $3,483, its journey faces challenges, including a slight downtrend in its weekly performance. Market experts like Quinn Thompson from Lekker Capital also predict a possible rise to $7,000 by the upcoming US election in November, reflecting a broader optimism among the crypto community shifting from bearish to cautiously optimistic regarding major cryptocurrencies.
