Long

ETH - Road to $220k each or 0.5 BTC (Part 1/2)

I would understand completely if when you read this, that you think this title is click-bait. It is not.

Current Price Action

ETHUSD is showing signs that it is about to begin its 2nd parabolic phase. To levels even the biggest Eth bull would "scoff" at.
A move similar in kind to which it had done during December 2016 to December 2017. Marked by pink arrows.
Currently we're in what looks like an ascending wedge pattern (grey lines). This give us a path to a more reasonable target of 19k. From $3,300 today.
19k is achievable of course by taking the height of the ascending triangle pattern (white) and applying that on top of current price action. What however this fails to factor-in is that it does not coincide with any fibonacci level. The next nearest being the 1.272 or 1.414 extension.
Nor does it reflect Ethereum's prior price history of a double-pronged bull market.

Initial Bull Market...

Oct 2015 - Jun 2016 (50x)
Dec 2016 - Dec 2017 (210x)

Current Bull Market...

Mar 2020 - Nov 2021 (60x)
Oct 2024 - March 2026 (~210x estimated)

Other Reasons

Should ETHUSD exceed the ascending wedge, price may well be attracted to the 1.618 fibonacci level like a magnet. This coincides with the height of the 1st phase of the bull market from March 2020 to November 2021 (pink arrow).
Volume on Eth has been low for quite some time, with it having lost market share to other tokens & projects. However we're already seeing volume pick-up, as denoted by the green arrow.
We will also soon break-out into the RSI bull zone on the weekly (in the bottom indicator section - available soon). This is something Bitcoin did back in April 2023 already. It therefore has a lot of catching-up to do.

How high in BTC terms?

If you want to go deeper into why (from a trading perspective) Eth will become valued at not just extreme levels in dollar terms (220k), but also in Bitcoin terms (0.5 BTC) make sure to click FOLLOW.
A Part 2 is incoming tomorrow with a more detailed analysis, exploring not just the possibility but more so the probability of a 0.5 BTC valuation for ETHUSD.

DigiDavid

Disclaimer

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