Amid the wake of the cryptocurrency market’s broad correction, one altcoin stood out among the rest: Ethereum. Somewhat forgotten as an afterthought thanks to Ripple’s dramatic rise to briefly take over the number-two market capitalization rank, Ethereum recently shattered all-time records. In some exchanges, the Ethereum price hit $1,500 before it too corrected.
Despite the ensuing sharp selloff, Ethereum is back in the swing of things. At time of writing, it’s trading hands just under $1,300. Notably, Ethereum has regained the number two slot, while Ripple suffered a catastrophic loss, falling below the $100 billion psychological threshold. Moreover, Ethereum, which has broad fundamental support from true cryptocurrency advocates, has far greater sentiment.
Interestingly, one of the price targets that I heard prior to heading into 2018 was $1,500 Ethereum.
After analyzing its chart, I think this forecast is a bit understated.
The current Ethereum rally is riding off the back of a massive bullish pennant formation. The up-and-down consolidation that we saw during the second half of 2017 was actually Ethereum trading inside the boundaries of the pennant.
Now that we’ve clearly broken out of this consolidation, $1,500 Ethereum is only the beginning. At a roughly half-year interval, we should expect at least a half-year of largely bullish momentum. We could also see a massive burst in valuation as an overenthusiastic reaction to breaking out of the pennant.
My personal view is that $3,000 by the end of 2018 is the low-end target. Realistically, I believe $5,000 is within reach. Ethereum has greater fundamental support, and its relatively rare compared to so many altcoin and blockchain assets.