Analyst: Ethereum heading to $7,331 after sustained breakout

After months of fluctuations, things are finally looking good for the Ethereum (ETH) price. The world’s second largest cryptocurrency has been firmly above the $4,000 price level for more than a week, which according to analyst Mags could form the basis for a rally towards a new record high.

Ethereum is breaking out sustainably

According to analyst Mags, Ethereum has finally achieved a sustainable breakout above the $4,000 mark after no less than 1,146 days of consolidation. The coin only managed to finally break through this resistance after three failed attempts and a fourth successful breakout in August. That ultimately led to a new all-time high of almost $4,950.

According to Mags, this move is “technically very positive” and may mark the beginning of a new major upward phase. Based on the Fibonacci extension, a commonly used technical indicator that calculates price targets based on previous price movements, the analyst sets the next price target at $7,331 per ETH. That would represent an increase of about 57 percent over current levels.

At the end of September, ETH briefly dipped below $4,000. Support around this level appeared strong. Soon, Ethereum bounced back and even experienced a strong rebound. In the past week, the price even rose by about 11 percent. This means that ETH is currently trading around $4,450, and a new record does not seem far away. The token is also clearly catching up compared to competitor Bitcoin (BTC), with a stronger percentage increase in recent weeks.

Analyst sees ETH heading towards $8,000

Another analyst, CryptoGoos, is even more outspoken. According to him, a multi-year ascending triangle pattern is visible on the long-term chart, a pattern that has been taking shape since 2020. After the breakout, ETH now appears to be briefly stabilizing above its old resistance. According to CryptoGoos, this is a sign of strength: “The consolidation above the trendline indicates healthy market dynamics. Once momentum returns, ETH could rise towards $8,000.”

Ethereum ETFs are filling up

In the meantime, we see that the American ETH spot exchange-traded funds (ETFs) are posting an extremely good series. The funds recorded six consecutive days of net inflows, according to data from Farside. In total, no less than 1.47 billion dollars flowed in during this period.

It is generally believed that a significant portion of the inflows into the ETFs come from institutional investors. It is unclear exactly how large that share is. But the funds offer companies a simple way to gain exposure to Ethereum without having to handle the complex management of tokens themselves.

Private investors, on the other hand, can easily buy via exchanges. That is why inflows are often considered a good indicator of market sentiment. Institutional investors typically anticipate the market movements of private traders.