Analyst Claims Ethereum Will Rise to $7,300: Here’s Why

Ethereum (ETH) has seen a strong rally and its price has risen from $2,400 to $3,700 in the last few weeks. This surge has caught the attention of traders and investors and sparked optimism about the future of ETH. However, according to pseudonymous analyst VentureFounder, Ethereum is primed for an even bigger rally and could potentially reach $7,346.

Despite the optimistic outlook, Ethereum’s fundamentals remain slightly unstable amid concerns over long-term holder (LTH) behavior and market volatility. Although a major breakout is expected, caution remains advised as Ethereum navigates these critical phases.

Ethereum has a strategic rise ahead of it

Analyst Venturefounder believes Ethereum is currently forming a cup-and-handle triangle consolidation pattern, which is often seen as a sign of future price increases. According to this analysis, if Ethereum manages to break through the $3,800 resistance level, it could reach a target of $7,346 – an increase of over 97% from the current price. This technical pattern implies that a sustained recovery is possible, but only if ETH confirms the breakout and continues to gain momentum.

However, the pattern is not yet fully confirmed and Ethereum’s further path depends on its ability to overcome the $3,800 resistance. Until this happens, Ethereum remains in a consolidation phase and a breakout could be the trigger for further price increases. Therefore, traders will look for signs of an upward move to confirm the predicted rally.

Ethereum’s macroeconomic dynamics remain positive, although concerns remain regarding the supply of long-term holders (LTH), as measured by the liveliness indicator. This metric tracks whether long-term holders are selling or accumulating Ethereum.

An increase in liveliness suggests that LTHs are liquidating their positions, which could indicate a downtrend or a change in market sentiment. Conversely, a decline in liveliness suggests that long-term holders are accumulating or holding their Ethereum, reinforcing the bullish outlook.

Currently, LTH uncertainty is a concern. If Ethereum’s liveliness continues to rise, it could indicate that long-term holders are selling out, which could result in downward pressure on the price. Such selling activity could destabilize the rally and delay a possible price increase. Therefore, the behavior of LTHs remains a crucial factor to monitor.

ETH price prediction: All-time high in sight

Ethereum is currently trading at around $3,700, just below the crucial resistance level at $3,800. If ETH successfully breaks this threshold, it could initiate a rally towards $7,346, as the cup-handle pattern suggests. This would represent a 97% increase and signal significant upside potential.

However, it is important for Ethereum to establish firm support above $3,800 before any significant price increases can occur.

A bounce from $3,800 is also key for ETH to break above $4,000, which is the current yearly high. This would justify the conviction of private investors and the interest of institutional investors.

However, if Ethereum’s liveliness continues to rise and long-term holders continue to liquidate their positions, the bullish scenario could be at risk. A sustained selling phase could lead to a price correction and push Ethereum back to the lower area of ​​$3,327. This possible downturn would invalidate the current bullish thesis and could delay the expected rally.