Ethereum Price Surges Above $4,200, Signals Potential 1,110% Rally

Ethereum's price has surged past $4,200, reaching levels not seen since 2021. The recent breakout has increased market confidence among retail traders.

Potential for Major Rally

Technical analysis suggests Ethereum could see a 1,110% rally, potentially pushing its price above $20,000. This projection is based on patterns observed in previous Bitcoin cycles. Key points include:

After an 83% drop, Bitcoin had a 342% recovery followed by a significant drop, which set the stage for a major surge.
Ethereum has mirrored this sequence, with a similar decline and recent rebound above $4,200.

Analyst Merlijn The Trader noted that Ethereum's current chart resembles its breakout structure from 2017, indicating bullish potential if the trend continues.

Market Sentiment

The rally above $4,000 is partly driven by institutional investments in Spot Ethereum ETFs. On-chain analytics reveal a rise in bullish sentiment, with positive mentions outpacing negative ones nearly two-to-one.

As of now, Ethereum is trading at $4,225, reflecting a 23% increase over the past week.