Ethereum Eyes $8,000 Surge Amid Familiar Technical Patterns

Ethereum’s native token, Ether (ETH), could be heading for a dramatic rise toward $8,000, according to market analyst Gert van Lagen. He points to a notable similarity between ETH’s current chart pattern and a historical trend observed in the Dow Jones Industrial Average (DJIA), suggesting the cryptocurrency is now entering a critical bullish phase. Van Lagen highlights what he describes as a “textbook expanding diagonal,” also known as a megaphone pattern, which has supported Ethereum’s major rallies since mid-2022. This pattern helped drive a 245% increase in Ether’s value from November 2022 to February 2024. Chart Formation Signals Possible Breakout Currently, ETH is trading near $3,800 and sits between the megaphone pattern’s upper and lower boundaries. Following a bounce from the lower trendline in March, van Lagen believes Ethereum is now primed for a potential move toward the upper trendline — situated around the $8,000 mark — by early 2026. Supporting this theory is a historical comparison with the Dow Jones from 1980, which exhibited a similar expanding diagonal pattern before reaching a major peak. Van Lagen ties this behavior to Elliott Wave theory, which breaks down market cycles into five phases. According to his analysis, Ethereum is now in its fifth and final wave — often referred to as the blow-off top — a stage marked by high volatility and accelerated buying from late entrants into the market. Ascending Triangle Adds Bullish Momentum Further technical indicators back van Lagen’s bullish case. Ether has reclaimed a multi-year ascending trendline and is now consolidating within a well-defined ascending triangle. Currently, it is testing resistance between $3,900 and $4,150. A breakout above this range could launch ETH toward $7,150 — an 80% increase from current levels — placing it near the upper bound of van Lagen’s projected megaphone. Macro Tailwinds Strengthen Bullish Outlook Felix Xu of ZX Squared Capital supports the bullish sentiment, noting that macroeconomic conditions and expected Federal Reserve rate cuts could further enhance ETH’s upside. Additionally, inflows into Ether exchange-traded funds (ETFs) continue to boost investor confidence. Xu also entertains the possibility of ETH reaching as high as $10,000 in the current market cycle. Meanwhile, blockchain firm Consensys has its own long-term valuation model for Ethereum. Using what it calls a “cost-to-corrupt” framework — which links ETH’s intrinsic value to the cost of attacking the network — the firm predicts a base price of $4,900 by the end of 2025, with a climb to $15,800 projected by 2028. Institutional Interest and Regulatory Clarity ETH’s current momentum is also supported by increased institutional activity and improving regulatory clarity around Ethereum-based stablecoins. As demand for on-chain financial products grows, Ethereum’s use case continues to expand, positioning it favorably for long-term appreciation.

Source: CryptoIntelligence