3 reasons why Ethereum will hit $10K next bull cycle
2024.09.29 10:33
Ethereum’s native token, Ether (ETH), looks poised to grow toward $10,000 in the coming months, according to a mix of bullish fundamental and fractal indicators.
2023-2024 price fractal hints at more ETH price upside
The first compelling reason behind Ethereum’s $10,000 target is its resemblance to a previous price fractal between January 2023 and March 2024, according to Julien Bittel, head of macro research at Global Macro Investor.
The 2023-2024 fractal (black) saw the ETH price consolidate between $1,500 and $2,000 before breaking out to $3,500. The current price action (red line) closely follows this pattern, mirroring the earlier consolidation phase.
ETH/USD price trends in January 2023—March 2024 vs. now. Source: Julien Buttel
Ethereum could see a bullish breakout if the price continues to move in the same direction—and with the same momentum—as witnessed between January 2023 and March 2024. Bittel showcases $10,000 as an achievable year-end target for Ether bulls.
Another Fib analysis points to a $10K Ethereum
The second key catalyst behind Ether’s ability to reach $10,000 comes from another fractal comprising a long-term Fibonacci retracement graph, exponential moving averages (EMA), and relative strength index (RSI) on Ethereum’s weekly chart.
Historically, ETH’s price action shows similarities between the 2017–2018 and 2020–2021 bull runs, where sharp corrections followed parabolic growth.
In the current setup, if ETH follows a similar trajectory, a rally from its 2022 low of $1,080 puts the 1.618 Fibonacci extension at $6,978 and the 2.618 extension at $10,623.
ETH/USD 1-week candle chart. Source: TradingView
Ethereum’s weekly chart shows it attempting to reclaim the 50-week EMA, currently around $2,749, while the 200-week EMA at $2,104 has historically marked the bottom of major corrections. Meanwhile, the RSI is neutral at 46, far from overbought, suggesting room for further upside if momentum shifts.
If Ether reclaims key levels and momentum strengthens, it could hit targets like $6,978 and possibly $10,623, following historical fractal patterns and technical indicators.
M2 money supply growth bodes well for Ether
The third reason for Ethereum’s potential $10,000 price is broader macroeconomic trends, specifically global M2 money supply growth.
As shown in the second chart, Bitcoin’s price has historically moved with M2 money supply growth changes from major central banks like the Federal Reserve, the European Central Bank, and the Bank of Japan.
M2 global supply vs. Bitcoin price performance. Source: MacroMicro.me
From 2011 to 2020, Bitcoin saw massive price gains during periods of aggressive M2 expansion, benefiting from inflationary concerns and increased liquidity. While 2022 saw M2 growth contract, 2024 shows early signs of a reversal as central banks ease monetary policies in response to economic uncertainties.
Related: Bitcoin targets $70K as stablecoin inflows and China stimulus boost rally
Since Bitcoin and Ethereum share a positive correlation, a renewed boom in Bitcoin’s price amid global liquidity expansion could also lift Ethereum, making $10,000 a realistic target.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
