Ethereum Price Set to Rally With Upcoming Expansion Phase

Ethereum has recently gained significant attention from analysts as it shows signs of completing a key phase in its market cycle.

Ethereum has recently come into the focus of analysts as it shows signs of completing a key phase in its market cycle. Many believe that the cryptocurrency may be exiting the ‘manipulation phase’ - the final step before an upward expansion, following classic Wyckoff accumulation patterns.

This view aligns with recent market movements, where Ethereum has retested the $2,100 level as it edges closer to the critical $2,200 resistance zone. A breakout above this zone could trigger a swift rally towards $2,800, according to analyst Michaël van de Poppe, especially as the U.S. dollar index (DXY) continues to weaken.

This view is also supported by on-chain data, which shows that institutional investors have been actively accumulating Ethereum in recent weeks. In the past week alone, institutions have bought 470,000 ETH, and the majority of this buying activity occurred within the $1,886-$1,944 price range, where over 6 million ETH were acquired.

This massive accumulation could propel Ethereum to test the $3,000 level soon, setting the stage for a potential move towards the $4,000 mark in the next expansion phase, if the Wyckoff model is followed.

As the largest altcoin, any rally in Ethereum is likely to spill over into other altcoins, setting the stage for a broad altcoin market rally.

This view is further supported by the fact that the recent volatility in the crypto market has pushed more traders into the market, leading to a 102% increase in trading volume for Ethereum in the past 24 hours.

At press time, Ethereum is trading at $2,083, indicating a 4% gain in the past 24 hours.

Can Ethereum reach $4,000?

If the Wyckoff accumulation cycle is followed, then Ethereum’s price targets are:

• Point A: $1,700 (low point of bear market)

• Point B: $2,200 (resistance level)

• Point C: $3,000 (high point of bull market)

If the current market trends continue, and the U.S. dollar index (DXY) weakens further, then Ethereum could rise to new highs in the next few months. However, it’s important to note that the cryptocurrency market is known for its volatility, and any sudden shifts in market sentiment could impact the trajectory of Ethereum’s price.

Still, with analysts closely monitoring the $2,200 resistance as a key breakout zone, and institutional investors actively accumulating Ethereum, the potential for a bullish move in the coming weeks is strong.