Ethereum approaches record high as Analyst supports $22K goal
Ethereum has seen a significant surge in its price, inching closer to its all-time high of $4,891, which was achieved back in November 2021. With the price of Ethereum now hovering around $4,700, there has been a notable increase of nearly 5% in the past 24 hours. This surge in price has been fueled by over $2.3 billion in net inflows to spot Ethereum ETFs over the past six trading days, with a record-breaking $1 billion flowing in just on Monday alone.
Analysts have been closely monitoring Ethereum’s network activity and adoption of Layer 2 solutions, which are contributing to the overall growth and sustainability of the Ethereum ecosystem. This has led to a positive outlook for Ethereum’s future price movements, with many experts predicting that Ethereum has the potential to reach even higher price targets in the coming days.
One of the key technical indicators that analysts are watching is Ethereum’s breakout from a four-year inverse head-and-shoulders pattern. This pattern is considered to be historically bullish and has led analyst Gert van Lagen to suggest that Ethereum could potentially reach a price target of $22,000 in the long term. The breakout was confirmed when Ethereum surpassed the $4,659 level, which is now acting as a crucial support level for the cryptocurrency.
CryptoQuant data further supports the bullish case for Ethereum, indicating that the 30-day SMA of Ethereum Netflows remains negative despite the recent price rally. This suggests that there are fewer coins moving onto exchanges, signaling limited selling pressure in the market.
Institutional interest in Ethereum has been on the rise, with prominent figures like ARK Invest CEO Cathie Wood doubling down on Ethereum and highlighting its growing institutional adoption. Wood has emphasized Ethereum’s dominance in Layer 2 solutions, stablecoin activity, and treasury utility with staking features. Corporate treasury holdings of Ethereum have also exceeded $16.5 billion, with significant accumulation by companies like BitMine Immersion Technologies, further tightening the supply of Ethereum in the market.
Ethereum’s network activity has been near record highs, with daily transactions surpassing 1.87 million on Tuesday and DeFi total value locked (TVL) standing at over $96 billion. This surge in activity underscores Ethereum’s position as a leading smart contract platform, with Layer 2 solutions like Arbitrum, Optimism, and zkSync contributing to scaling and adoption.
Looking ahead, analysts have identified key resistance levels around $4,700–$4,750, with a decisive breakout above this zone potentially triggering price discovery. Analysts are targeting price levels between $7,000 and $13,000 in the medium term, with a potential high of $22,000 in the long term if bullish momentum continues. Despite optimism in the market, analysts are cautious about the possibility of retests of support levels before a sustained rally unfolds.
