The price of Ethereum’s ether, the second-largest cryptocurrency by market capitalization, could move upward to hit $6,000 if it manages to hold above a key technical level, according to Fairlead Strategies’ Katie Stockton.
In a note, first reported on by Business Insider, Stockton noted Ethereum’s recent gains to hit a new all-time high above $4,600 could be maintained if the cryptocurrency manages to two mark two weekly closes above its prior resistance at $4,384.
If ETH’s price ends this Friday and the next one above that mark, Stockton sees the cryptocurrency rise as much as 33% from its current levels to hit the $6,000 mark in the next six to 12 months.
The analyst was quoted saying:
Of course, we would not expect it to get there in a straight line, but a confirmed breakout would support a bullish bias potentially through the first half of 2022
If the cryptocurrency fails to close above $4,384, she added, then investors can look for potential support around the $3,340 mark. The drop would lead to a 26% downfall for investors.
As CryptoGlobe reported, analysts from Goldman Sachs believe Ethereum could soar to $8,000 by the end of the year after finding the cryptoasset has traded in line with inflation breakevens since 2019.
According to ZeroHedge, Goldman Sachs’ Global Market managing director Bernhard Rzymelka compared Bloomberg’s Galaxy Crypto Index versus the USD 2-year forward rate and the 2-year inflation swap, suggesting inflation is a driving force helping Ethereum and other cryptoassets move up.
Rzymelka wrote in a note sent to clients that the local backdrop looks positive for Ethereum as the cryptocurrency has “tracked inflation markets particularly closely, likely reflecting the pro-cyclical nature as “network based” asset.” The strategist added that the “latest spike in inflation breakevens suggests upside risk if the leading relationship of recent episodes was to hold.”
It’s worth noting former Goldman Sachs executive Raoul Pal has revealed on social media that he is “more than irresponsibly long ETH right now,” even adding leverage to his position on the second-largest cryptocurrency by market capitalization.
Pal has notably suggests he sees ETH go to $20,000 “this cycle” based on Metcalfe’s Law. Raoul Pal said at the time that it’s “all Metcalfe´s Law,” and that “ETH = BTC” whether investors like it or not. He started pointing towards a model his team created to demonstrate Metcalfe’s Law on the BTC network using active addresses and the cryptocurrency’s price, as well as market capitalization, before showing Ethereum looks like BTC in its early days based on that metric.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.