Market experts are watching ETH closely as some recent patterns indicate that the cryptocurrency might be on the precipice of a new surge in prices. Analyst Ali Martinez has pointed out that Ethereum may reach $10,000, depending on the S&P 500 Index.
This link is built on the basis of similar trends of the prices. They have been increasing since the end of 2022. Martinez’s approach is based on the ability of Ethereum to mimic the S&P 500 performance in the present economy.
Ethereum and the S&P 500: A Comparative Analysis
However, Martinez has noted that both Ethereum and the S&P 500 entered a sub-phasе of bottoming out in late 2022 and then began to rise in 2023. The charts he presented form a clear ascending trajectory, which is usually considered a bullish signal in technical analysis.
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This pattern indicates that buying pressure is slowly overtaking selling pressure, which is indicative of upcoming upward movement. The S&P 500 has already escaped this pattern, reaching a high of around $5,900 before a little retracement.
According to Martinez, Ethereum’s current bearish trend may be the final push before a major upswing. For Ethereum to hit the targeted price of $10,000, the price has to rise by 312.36% from the current price of $2,425. This forecast is based on the assumption that, as with other equities, the cryptocurrency market will follow the S&P 500 pattern.
Insights from On-Chain Metrics
In addition to that, on-chain metrics also indicate the current state of the Ethereum market. IntoTheBlock reported that 22.93% of all active Ethereum addresses were in profit at the time of writing. This is a sign of solid demand for the token.
This means that there are 96,660 addresses that are ‘in the money.’ A majority of the holders are in profit.
Nevertheless, a slightly bigger part of Ethereum users, 60.83%, or 248,920 addresses, can be referred to as ‘neutral.’ They are holding ETH around the price of their initial investment.
This group represents the state of the market where holders are unsure of the next course of action depending on the prices. About one in six addresses, or 16.24%, are currently ‘out of the money.’
This means these addresses may sell if prices go down. These segments’ behavior could very well be the defining factor of Ethereum’s short-term price movement.
Furthermore, as reported before, an Ethereum trader who has been making only successful trades has bought an additional 7,483 ETH for $18.8 million. This has increased the total amount of ETH held to 10,216 ETH worth $25.6 million.
Analyst Insights
Similarly, analyst Ali Charts pointed out that Ethereum may be entering a bull run. Its 4-hour chart has displayed a TD Sequential buy signal.
But ETH needs to close above the key $2,480 support level to signal a reversal. The upside potential towards $2,730 and above may signal the next key level for the short-term direction.
However, Peter Brandt, a veteran trader, has a more conservative view of Ethereum even as Martinez paints a positive picture. Brandt has observed that today’s charts have no indications of a trend reversal.
He noticed a bearish flag that has been forming since August. This could lead to the continuation of the price drop. If this pattern continues, Brandt believes that Ethereum may fall to a low of $1,551.
According to Brandt, there are plenty of bearish signs in the Ethereum price charts. This indicates that if new bullish patterns do not develop, it will be difficult for Ethereum’s price to increase.
