Ethereum has been facing a tough market cycle, trailing behind Bitcoin and other altcoins. However, crypto analyst Ali Martinez has a bold prediction that Ethereum ($ETH) is about to outperform Bitcoin ($BTC).
His analysis shows that Ethereum is poised for a major rally, potentially hitting $10,000.
Martinez points out that every market cycle sees a phase where Ethereum outperforms Bitcoin, and while it hasn’t happened yet in this cycle, it’s just around the corner. Ethereum’s lag behind Bitcoin presents an opportunity for investors to buy before the price starts to soar.
The analysis is backed by Ethereum’s Market Value to Realized Value (MVRV) Momentum, which suggests that ETH still holds significant upside potential.
Savvy investors have noticed a major shift in spot Ethereum ETFs. In just the past two weeks, these ETFs have gone from selling off to accumulating, with over $147 million in ETH now invested.
Data shows Ethereum whales have been active in accumulating the asset. In just the last two weeks, these whales have purchased over 430,000 ETH, worth approximately $1.40 billion.
According to Martinez, Ethereum is currently forming an ascending parallel channel, with price targets ranging from $4,000 to $6,000. However, the boldest prediction is that Ethereum could mirror the S&P 500’s rally, pushing ETH to the $10,000 mark. This optimistic scenario is supported by the price action of both ETH and the S&P 500, which have shown similar recovery patterns since late 2022.
Another key factor is the strong support levels Ethereum has maintained. The $3,000 level has held up well, as 2.82 million addresses have accumulated over 6.14 million ETH at this price. The second critical supported level is at $2,400, which is the lower boundary of the ascending channel.
Martinez’s forecast isn’t just based on historical cycles. There’s a broader shift happening in the market. Ethereum has been building solid momentum, with the MVRV Momentum suggesting more room for growth.
As Ethereum continues to build support and gain traction, analysts like IamCryptoWolf agree that once ETH breaks through the $4,000 mark, a rally toward $10,000 could be in play.
Ethereum’s ability to mirror the S&P 500’s performance adds weight to the $10,000 prediction. If ETH follows the same trajectory, it could easily rise by over 300% from its current level of around $3,100. The latest on-chain data backs this up, showing that nearly 23% of Ethereum wallets are currently profitable.
Also Read: Why is Ethereum Stalling in Bull Run and When will it hit $4K?
