Ethereum Price Builds Momentum as Wyckoff Models Signal $7K

Ethereum Price Prediction: ETH Targets $7K Amid Wedge Breakout

Ethereum is the focus of discussions as traders keenly watch the crypto making its next move after recent weeks of consolidations. Additionally, technical configurations in different time frames show that the altcoin is on the verge of breaking out. Meanwhile, fundamentals and increased adoption continue to position the crypto as the top altcoin going into the next cycle.

Analyst Tardigrade’s weekly chart depicts a falling wedge, which is usually a positive reversal pattern. Ethereum has been compressing between two convergent trend lines above support at $4,200,  a previous key resistance level. This recurrent retest of support adds to the argument of a breakout to the upside. The altcoin rallies have in the past taken the same wedge patterns, with any downward consolidation eventually catalyzing explosive upward movements.

ETHUSD 1-W CHART | SOURCE: X

Furthermore, another opinion, according to the Wyckoff Accumulation model, demonstrates Ethereum passing through the Spring, Test, and Sign of Strength periods. The above breakout over previous resistance has changed momentum, with price currently floating on the Final Point of Support at around $4,200. Continued growth in demand at this level is the beginning of a markup phase, estimated to reach up to $7,000 by the end of 2025.

ETHUSDT 1-D CHART | SOURCE: X

Moreover, analyst Max Crypto emphasizes the significance of the retest of previous resistance of ETH at $4,000, which has become a strong support. Having hit its downward trendline several times back in the year, the altcoin followed a bullish reversal pattern with increased highs and increased lows. Retaining price above this zone should be the runway to targets between $6,000 and $7,000. 

ETH PRICE CHART | SOURCE: X

However, with a fall of ETH, traders are likely to experience a correction before improvement to mid $3,000.

Ethereum Futures Outpace Bitcoin as Market Focus Shifts

Additionally, Ethereum is not only dominant in charts since recent statistics have shown that trading volume in ETH futures is more than Bitcoin, with $40.5 billion traded in the last 24 hours as opposed to $33.5 billion of BTC traded. This is a startling trend, an indication of a changing market focus. High volume is a precursor of volatility, but also an indicator of institutional confidence. In the meantime, Bitcoin continues to offer directional signals, while short-term movements of ETH in most cases reflect corrections in BTC.

24H VOL PER COIN | SOURCE: X

Compared to sector competitors, ETH has a dominant position. Solana comes in third with an insignificant amount of only $13.3 billion in futures volume, whereas other altcoins are much lower. This demonstrates that traders are moving capital to Ethereum and Bitcoin with less exposure to weaker projects.

Fundamentals Strengthen Amid Growing Institutional Demand

Other than trading activity, the fundamentals of Ethereum are good.  Increased staking continues to keep supply locked up, decreasing liquid tokens in circulation. Also, institutional investors are getting increasingly interested in ETH-backed products, while solutions in layer 2 scaling are gaining momentum. 

Moreover, integrations in decentralized finance (DeFi) and tokenizations are additional demand drivers, providing a strong base of valuation. These aspects render ETH more resistant compared to a good number of competitors, even at times when the market undergoes stress.

Ethereum is a project that is about to take a big leap in the future. A breakout above wedge resistance would take the altcoin to the range of $6,000-$7,000, and futures supremacy would indicate positive speculative buying. However, the risks of the downside are present in case support beyond $4,000-$4,200 is lost, and a further correction may be expected. 

However, the second largest crypto has the potential to lead in conquering subsequent waves of crypto markets with favorable technicals, growing usage, and institutional interest.