Cryptocurrency analytics platform Cryptofy Hub expressed optimism in Ethereum's (CRYPTO: ETH) growth trajectory, forecasting a move to $10,000 by year-end.
What Happened: In a post on X, formerly Twitter, on Thursday, the platform noted the formation of a rising wedge pattern for Ethereum on a multi-year chart, with both the resistance and support levels sloping up.
#Ethereum Weekly Update:
$ETH price within a classic rising wedge pattern
Resistance levels and higher highs sloping up, potential breakout ahead.
Support levels are converging, showing strong uptrend.
We could see a significant bullish move to above $10K by the... pic.twitter.com/HFIgfWCcYo— Cryptofy Hub (@CryptofyHub) May 30, 2024
Cryptofy Hub highlighted the converging support levels, which, according to them, reflected a strong uptrend.
Typically, most technical analysts interpret the rising wedge formation as a bearish chart pattern that indicates a potential breakout to the downside.
That said, Cryptody Hub was optimistic about Ethereum reaching as high as $10,000 by the end of the year.
One X user questioned these projections, saying, "I don't believe it will continue like that. It is a bear market once the top has been blown off. "2025-2026 will be brutal."
Why It Matters: These bullish forecasts come amid a strong wave of whale accumulation for the world's second-largest cryptocurrency.
On Thursday, prominent analyst and trader Ali Martinez drew attention to a considerable increase in wallets holding at least 10,000 ETH. Martinez interpreted this as a change in market behavior from distribution to accumulation.
There's been a notable increase in #Ethereum addresses holding 10,000+ $ETH, indicating a shift from distribution to accumulation! pic.twitter.com/afXTfpiK1I
— Ali (@ali_charts) May 30, 2024
Whale transaction value also rose 7.28% in the last 24 hours, according to IntoTheBlock, lending credence to the aforementioned narrative.
Sentiment around the asset took a 180-degree turn last week when the SEC approved the first-ever spot Ether ETFs in the U.S. The sentiment and the hype pushed the cryptocurrency near to $4,000. However, it has sharply corrected since then.
Price Action: At the time of writing, Ether was trading at $3,738.32, trading mostly flat in the last 24 hours, according to data from Benzinga Pro.
Photo by Tomasz Makowski on Shutterstock