While Ethereum (ETH) has shown relatively subdued performance recently, analysts are detecting indications of an impending significant price upswing.
Converging technical indicators and market dynamics, which have historically foreshadowed substantial rallies, are prompting some experts to forecast a potential 200% surge in value.
With February traditionally being a robust month for ETH, there is increasing speculation about whether this signals the initiation of the next substantial upward movement for the cryptocurrency.
Ethereum’s Potential for a 200% Upsurge
Recent chart patterns of ETH have sparked conjecture among analysts regarding a possible rally. Notably, analysts are drawing parallels between the ETH/BTC pair’s current situation and the explosive growth witnessed in 2021, which resulted in a 180% increase in just two months.
Analysis indicates that Ethereum may be on the cusp of another similar surge, with the ongoing cycle exhibiting resemblances to past phases of accumulation followed by breakout uptrends.
A potential 200% rally is being considered feasible, particularly as Ethereum nears the pivotal point of the four-year cycle, historically associated with the commencement of significant upward movements.
The Four-Year Cycle of Ethereum
Ethereum has demonstrated discernible cyclic patterns, notably in 2017 and 2021, characterized by notable price escalations.
In 2017, ETH’s value surged by approximately 9,380%, reaching close to $881.94 by the year-end.
Similarly, in 2021, Ethereum’s market cap exceeded $250 billion for the first time, indicating substantial expansion.
These historical trends suggest a repetitive cycle of substantial growth roughly every four years.
As the next phase of the cycle approaches, analysts are speculating on Ethereum’s potential for another significant rally, potentially actualizing the projected 200% increment.
Reversed Liquidity Trends Favoring Ethereum
Ethereum’s recent price fluctuations have revealed challenges in sustaining levels above $3,100, with the Relative Strength Index (RSI) nearing oversold conditions at 42.17, hinting at probable accumulation.
The 50-day Simple Moving Average (SMA) has remained above the 200-day SMA, indicating residual bullish sentiment, albeit with a tightening gap.
Notably, Ethereum has held firm at the crucial support level close to $2,984, a pivotal point that could determine its next trajectory.
Meanwhile, liquidity patterns are shifting in favor of Ethereum as funds flow back from Solana. Recent data indicates that Solana has transferred four times more capital to Ethereum than the reverse, signifying a renewed investor trust in ETH.
This resurgence in liquidity could act as a supportive factor, bolstering Ethereum’s defense of current price levels and positioning it favorably for a potential recovery.