Ethereum’s Price Skyrockets: What’s Behind the Surge and What’s Next?

Ethereum’s Price Skyrockets: What’s Behind the Surge and What’s Next?

As the year comes to a close, the cryptocurrency market experiences heightened volatility, with Ethereum (ETH) defying expectations and making significant strides. In the past 24 hours, Ethereum’s price has surged by 9.9%, reaching $2,446 and boasting a market cap of $291 billion, marking a substantial breakout.

Ethereum Sets the Stage for 2024

In a recent tweet made by Greeks.Live suggesting that the recent surge has not only pushed Ethereum past the coveted $2,400 mark but has also synchronized with an upswing in implied volatilities (IVs), hitting yearly highs. Perhaps, the 30-day volatility (DVOL) has surged by 70% since April.

Up until now, Bitcoin has been the star of the show in the crypto market’s recent surge in the last part of the year. However, Ethereum, while making progress, hasn’t quite kept up with the speed of Bitcoin.

Market experts, though, have an optimistic view of Ethereum as we head into 2024. Michael van de Poppe, a crypto analyst, thinks there’s a historical pattern unfolding. This pattern suggests that Bitcoin’s dominance might hit its highest point just before the upcoming Bitcoin halving. When this happens, it usually signals the start of a good time for alternative cryptocurrencies, and Ethereum is expected to shine during this period.

Even though the bullish momentum continues, Skew data shows that institutional traders haven’t yet taken part in this rally. The absence of institutional FOMO (Fear of Missing Out) suggests a restrained approach among these key market players

Technical Patterns See ETH Surge

In the meantime, the price of Ethereum has recently gone up to $2,433, breaking an important barrier set at $2,334. This particular price level is crucial because it’s linked to a well-known bullish pattern called the inverse head and shoulders formation.

Typically, a head and shoulder pattern suggests that prices might go down, but the inverse head and shoulders do the opposite. This pattern indicates a change in direction and is formed by three lows and two highs. 

For Ethereum (ETH), the head’s height implies a growth of $218, placing the target at $218 above $2,334. This sets the expected rise at $2,551, showing a 9.3% growth. Looking at the 8-hour chart, Ethereum has already met the pattern criteria by breaching the neckline, indicating there’s still room for more growth.

Currently trading at $2,404, there’s a possibility for ETH to rise by another 5% before reaching the target price, as per a coinpedia report. If this happens, breaking the target could set Ethereum up for a surge to $3,000. 

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