Ethereum (ETH), currently trading at $2,616, is predicted to rise to $10,000 in the coming months based on fundamentals and fractal analysis.
2023-2024 Price Pattern Suggests ETH Bullish
The first reason why ETH has a target of $10,000 is because of the similarity to the previous price pattern from January 2023 to March 2024, according to Julien Bittel, head of macro research at Global Macro Investor.
The 2023-2024 price pattern shows that ETH price accumulated between $1,500 and $2,000 before spiking to $3,500. Currently, ETH price is following this pattern closely, reflecting the previous accumulation period.
ETH/USD Price Trend Jan 2023—Mar 2024 vs. Present | Source: Julien Buttel
Ethereum could see a bullish breakout if prices continue to move in the same direction and momentum as seen from Jan 2023 to Mar 2024. Bittel sees $10,000 as a possible year-end target for Ether bulls.
Fib Analysis Shows ETH’s $10k Target
The second important factor is another fractal analysis, including long-term Fibonacci retracement charts, exponential moving averages (EMAs), and relative strength index (RSI) on Ethereum’s weekly chart.
ETH’s price history shows similarities between the 2017–2018 and 2020–2021 bull runs, with sharp corrections following parabolic growth.
In the current scenario, if ETH follows the same trajectory, a rally from the 2022 low of $1,080 would take the 1.618 Fibonacci extension to $6,978 and the 2.618 extension to $10,623.
ETH/USD 1-Week Candlestick Chart | Source: TradingView
Ethereum’s weekly chart shows it trying to reclaim the 50-week EMA, currently around $2,749, while the 200-week EMA at $2,104 has marked the bottom of major corrections. Meanwhile, the RSI is at a neutral 46, far from overbought levels, suggesting room for further gains if momentum shifts.
If Ether reclaims key levels and momentum strengthens, it could hit targets like $6,978 and possibly $10,623, according to historical fractal patterns and technical indicators.
M2 Money Supply Growth Supports ETH
The third reason for Ethereum’s ability to hit $10,000 is broader macro trends, particularly global M2 money supply growth.
As shown in the second chart, Bitcoin’s price typically moves in line with changes in M2 money supply from major central banks like the US Federal Reserve (Fed), European Central Bank (ECB), and Bank of Japan (BoJ).
Global M2 Supply vs. Bitcoin Price Performance | Source: MacroMicro.me
From 2011 to 2020, Bitcoin saw massive price increases during periods of strong M2 expansion, benefiting from inflation fears and increased liquidity. While 2022 saw a contraction in M2 growth, 2024 shows early signs of a reversal as central banks ease monetary policy in response to economic uncertainty.
Since Bitcoin and Ethereum are positively correlated, a new Bitcoin rally amid global liquidity expansion could also lift Ethereum, making the $10,000 target realistic.