Ethereum (ETH) Is Up 25% Over the Last Seven Days: Is A Breakout Nigh?

Ether’s trading activity over the last couple of days has been positive and encouraging. ETH/USD value has risen by 8.57% since Monday. Currently changing hands just above $3,240, Ether is showing a bullish outlook, having flipped the $3,200 level. The token could see even more gains if buying pressure mounts.

Earlier this week, New York-based financial research and crypto research firms FSInsight chipped in the Ethereum forecast conversation, providing its long-term prediction on the price of the crypto asset. Here is more on the projection and other headlines around Ethereum.

FSInsight Report: Ethereum could hit 12k by year-end

Independent research firm FSInsight recently sent a note to investors noting that the second-largest digital asset by market cap, Ether, can hit $12k by the end of the year. The ‘Digital Assets in A Post-Cycle World’ report added that market leader Bitcoin could be valued at $200k by then.

FSInsight said that for Ethereum to reach these prices in the second half of 2022 as forecasted, ETH must massively onboard users. The head of digital asset strategy at the firm Sean Ferrell explained that this has a “reasonable chance” of happening.

Also, the report found that with the increasing popularity of decentralized finance, the blow-up of the NFTs and generally Web 3 over the last year, the Ethereum network is massively undervalued. The investor note further suggested that the disinflationary pressure of Ethereum’s transaction fee burning mechanism sets Ether for a price hike.

The report was equally bullish on Ethereum’s supply-side dynamics, adding that the chain would benefit from merging with the Consensus Layer, transitioning into PoS. Ferrell observed that even though there exists risks such as the Federal Reserve plan to hike rates, at the moment, Ethereum’s upside exceeds the downside.

Who’s been eating into trader pain? IntoTheBlock explores

Crypto intelligence and research firm IntoTheBlock has reviewed who has been active in the bear market, taking up Ether, since the token fell from the all-time high recorded last November.

In a report shared yesterday on CoinMarketCap, the firm’s analyst Juan Pellicer observed that investors who have retained their ETH holdings for more than a year, hodlers, currently own about 45% of the total ETH supply, 52.4 million ETH.

Comparatively, those who have held their crypto for between one and 12 months (cruisers) own about 41% of the lot, and about 15% of the addresses have held ETH for less than a month (traders).

The hodlers have increased their holdings by at least 8% over the last 30 days, indicating that long-term bulls are taking advantage of price corrections to accumulate more ETH, and they have mostly taken from the cruisers.

At the moment, the wealthiest hodlers of Ether (above 10,000 tokens) control a combined 69% of the total supply.

The report observed that the decentralization of ETH supply ownership is slowly happening over time. This is a good sign since a more distributed supply translates into reduced market dependency on whale movements.

Ethereum is looking to break out, crypto analyst forecasts

Crypto analyst Benjamin Cowen has forecast that Ether will likely break out of its current reaccumulation zone following the jump back above the $3,000 region.

Ethereum has been seeing sideways reaccumulation between the $2,000 to $4,000 region over the last year, and Cowen is predicting that it could break away from this range. Should it run away, which he says could happen around June or July 2022, he argues it is possible that ETH might never again revisit this price range. This observation was based on the fact that when ETH broke out of the reaccumulation zone, it saw in 2016, it never fell back down.

However, Cowen isn’t all bullish. The analyst said that if ETH breaks out of the current sideways market structure, it will eventually end the year with a bear market, sliding back down into the present reaccumulation zone.

The analyst recently told his YouTube followers that it is unlikely that Ether spends upwards of a year between $2k and $4k just to dump all its gains. He believes that the asset is tracing a structure similar to the 2016-2017 period when sideways movement lasted for about a whole year before a breakaway happened.

Ethereum (ETH) Market Performance

ETH/USD has gained 3.80% in the last 24 hours, with only the red hot XRP posting more. Market data suggests Ethereum could make a move for higher grounds soon with the immediate target being $3,400.

The token faces stiff resistance on its ascent, but the introduction of any bullish factors in favor of the token could go a long way in boosting its upward momentum. Intensified buying pressure in the market will almost certainly send Ethereum price higher, albeit it is unlikely to go as high as $3,600 in the short term. Still, a descent towards 3,000 is plausible considering the crypto market is only starting to get in the clear, and a rally significantly hinges on whether there will be increased buying pressure.

To learn more about this token visit our Investing in Ethereum guide.

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