A crypto analyst has shared a new bold forecast for the Ethereum price, predicting that the number one altcoin is on the verge of an explosive rally to $17,000. The analyst has cited past trends to support his bullish projections, highlighting that Ethereum rallies significantly after a decline.

Ethereum Price Forecast Targets $17,000

According to Kiu_Coin, the Ethereum season has just begun, opening up possibilities of price reversals and buying opportunities. Lately, the Ethereum price has been trading sideways, experiencing massive declines that the analyst has described as a “shake out.” 

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His chart shows that Ethereum has recorded a unique pattern of shakeouts over the past years, followed by explosive upward moves. In this context, a shakeout refers to a sudden drop in the price of a cryptocurrency that forces weak players​​ in the market to sell their holdings before the price reverses and surges upward. 

In his price chart, Ethereum experienced a final shakeout around 2020, during the previous bull market. This substantial decline was followed by a significant price spike in 2021, marking new ATHs for ETH. At the time, the cryptocurrency had skyrocketed by 1,310.6%, recording one of its largest price increases. 

The current price is about $2,637, experiencing a shakeout similar to that in 2020. While other altcoins rallied these past few months, the Ethereum price has struggled with volatility and stagnation. 

This bearish trend or shakeout has led to significant sell-offs by investors. If history is any indication, Kiu_Coin believes that once Ethereum concludes this decline stage and weak hands are removed from the market, the cryptocurrency could experience a bullish breakout to new highs.

Update On ETH Price Analysis

The TradingView expert projects an upward move toward the $17,000 price target. This would represent a 732% increase for Ethereum over the next 217 days, seven months from the time of the analysis. Support levels around $2,173 and $2,069 have also been marked on the chart, representing price levels that may prevent further decline in ETH.  

As mentioned earlier, the Ethereum price has been on a severe downtrend, failing to meet the market’s expectations as its value drops steadily below the $3,000 mark. While other altcoins have recorded year-to-date increases, CoinMarketCap’s data shows that the Ethereum price has only increased by 5% since the beginning of the year. 

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Over the past month, the cryptocurrency experienced an 18.5% price crash owing to market volatility and the sudden decline in Bitcoin’s value. Although ETH struggles to recover from bearish trends, its 24-hour trading volume of $19 billion is up by 20.9%.

Featured image from Adobe Stock, chart from Tradingview.com

After experiencing a flash crash to $2,125 on February 2, Ethereum (ETH) swiftly rebounded to a high of $2,905, triggering liquidations for both long and short positions amid a highly volatile trading period. While the token currently hovers around $2,700, crypto analyst Ali Martinez has identified a critical support level that must hold for Ethereum to sustain its bullish momentum.

Ethereum Must Hold This Support Level For Bullish Momentum

In a post on X today, seasoned crypto analyst Ali Martinez pinpointed the $2,238 to $2,614 price range as Ethereum’s ‘most important’ support zone. According to Martinez, approximately 12.18 million crypto wallets acquired 63.07 million ETH within this range. The analyst further emphasized:

It doesn’t matter whether Ethereum is inflationary, deflationary, or whatever. What truly matters is whether it holds this support level.

To understand why this price level is important, it shows that a significant number of investors and traders bought ETH within this range. When a large number of wallets hold assets at similar price levels, this creates a zone of support because these holders are less likely to sell at a loss, thereby providing a floor for the price.

Support levels also carry psychological weight in trading. Investors who bought ETH within this range tend to perceive it as a fair valuation, increasing the likelihood that they will defend this level by either holding or accumulating more ETH. This collective sentiment can provide stability and potentially prevent deeper price drops.

Fellow crypto analyst Ted echoed similar sentiments regarding Ethereum’s price trajectory, affirming that the long-term outlook remains positive. Ted remarked:

ETH still holding the uptrend trendline and recently bounced back from a crucial support level. Along with that, BlackRock is buying $250M+ worth of ETH, which will soon reflect in its price action. $10K+ ETH is programmed this cycle.

Additionally, Martinez highlighted the emergence of a potentially bullish inverse head-and-shoulders pattern on Ethereum’s daily chart. For this pattern to validate a bullish breakout, ETH must maintain support above $2,700. If successful, the next upside target could extend as high as $7,000.

Could Ethereum Price Be Heading Downwards?

Despite these bullish indicators, concerns persist over Ethereum’s price action, as the digital asset has significantly underperformed compared to cryptocurrencies like Bitcoin (BTC), SUI, and XRP over the past year. A recent report indicates that large ETH holders may be gradually losing confidence in the asset.

Moreover, recent analysis suggests that Ethereum may be at risk of an extended downturn in the coming days. At press time, ETH is trading at $2,774, down 0.9% over the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

Most large-cap altcoins have moments of brilliance in this current bull cycle, with Solana and XRP being some of the stand-out performers. On the other hand, Ethereum “the king of altcoins” has struggled to impress, underperforming over the past year.

The latest on-chain data shows that a significant percentage of ETH investors are now underwater, partially due to the downturn that recently plagued the general market. Below is the amount of the Ethereum supply in loss and its potential impact on price.

How Many ETH Tokens Are In Profit?

In a Feb. 8 post on the X platform, prominent on-chain analytics firm Santiment revealed that the amount of Ethereum tokens in the red has steadily increased over the past few weeks. The two relevant metrics here are the “percent of total supply in profit” and “total supply in profit.”

For context, the “supply in profit” metric is calculated by adding all token amounts that were last transferred when the token’s price was less than the current price. Meanwhile, the “percent of total supply in profit” metric measures the percentage of a cryptocurrency’s total supply currently being held at a price higher than the original purchase price. It represents the ratio between supply in profit and circulation supply.

According to Santiment, Ethereum’s market capitalization has slumped by at least 36% since reaching a local high of $4,016 in mid-December. Expectedly, this steady price decline has resulted in a notable drop in the amount of ETH tokens in profit since their date first mined.

Source: Santiment/X

Data from Santiment shows that the amount of Ethereum tokens in profit is currently around 97.7 million, the lowest value since November 4, 2024 (the night Trump won the United States Presidential election) At the same time, the ratio of the total ETH supply in profit stands at 65.5%, the lowest value since October 2, 2024, and down from 97.5% in early December.

Santiment noted in its post:

The crowd has been notoriously negative toward the #2 market cap as it has under-performed compared to other large caps. With a great deal of FUD and retail traders willingly dumping their tokens, there may be some surprise bounces in store once crypto markets are able to stabilize.

When a relatively lesser percentage of a token’s supply is in profit, resilient long-term holders are likely to dominate the market. This means most “FUD and retail traders” have exited their positions and sold their tokens, reducing downward pressure and setting the stage for a potential rebound.

Ethereum Price

As of this writing, the price of ETH sits just above the $2,600 mark, reflecting an over 2% increase in the past 24 hours.

The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView