Elja highlights Ethereum’s adherence to a fractal pattern reminiscent of its significant price surge in 2021. Despite the prevailing consolidation, the question looms: Can Ethereum overcome current challenges and make a notable move?
In a critique of common crypto perspectives, Elja emphasizes the myopic nature of most traders, urging them to adopt a longer-term outlook for a comprehensive understanding of the overarching price trends.
𝗘𝘁𝗵 𝗧𝗼 $𝟭𝟱𝟬𝟬𝟬 𝗕𝘆 𝟮𝟬𝟮𝟱 🤑🤑
In crypto, most people are short-sighted, and they don’t try to see the bigger picture.
Right now, the crypto sentiment is very low as Grayscale is dumping its BTC holdings and the SEC is delaying the Ethereum spot ETF.
People are… pic.twitter.com/MoXQfHHgAk
— Elja (@Eljaboom) January 25, 2024
Presently, Ethereum, much like Bitcoin (BTC), grapples with persistent pressures and struggles to breach immediate resistance levels. A glance at the daily chart reveals ETH’s precarious position, hovering around a crucial support level near $2,200. Remarkably, the coin has undergone a 20% decline from its January 2024 peak of approximately $2,700.
In the short to medium term, Ethereum faces notable pressure, mirroring the technical candlestick configuration observed in Bitcoin. The altcoin’s downtrend seems to be spurred by developments following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). As a ripple effect, Bitcoin’s value plummeted from around $47,000 to below $40,000 this week, impacting various altcoins, Ethereum included.
On-chain data indicates that Grayscale Investments has been offloading substantial quantities of coins associated with the Grayscale Bitcoin Trust (GBTC). Consequently, a sell-off has transpired in both Bitcoin and the broader altcoin market. Adding to Ethereum’s woes, the postponement of spot Ethereum ETF approvals by the United States SEC has further exacerbated the situation.
Despite the current challenges dampening sentiment, Elja remains optimistic about Ethereum’s long-term growth trajectory, viewing the ongoing consolidation as a positive and “healthy sign.”
The Road to $15,000: A Blend of Fundamentals and Technicals
Elja suggests that during periods of consolidation in crypto prices, it could indicate whales accumulating positions. Once this accumulation phase concludes, Ethereum prices may experience an upward trend. According to Elja’s analysis, the coin is poised to break through from its current levels, reaching heights between $5,000 and $15,000 in the upcoming sessions.
Related: Major Ethereum Whale Activity in Exchanges and DeFi
Drawing parallels with a fractal pattern observed in Ethereum’s price action, Elja draws on the historical surge from $200 to $4,800 over 15 months from 2019 to 2021. Extrapolating from this past behavior, Elja envisions Ethereum following a similar trajectory and predicts the coin surpassing its previous peak in November 2021.
Beyond the technical aspects, proponents of Ethereum point to the decreasing issuance rate. Ultrasound Money data reveals that the network has been actively burning thousands of ETH, effectively reducing the overall supply. Furthermore, Larry Fink, the CEO of BlackRock, lends support to Ethereum’s potential by asserting that it will emerge as the preferred network for tokenizing real-world assets (RWAs) in the years to come.
