Ethereum Price: Massive $10,000 Breakout Imminent Despite 8% Drop

The cryptocurrency market often presents dramatic shifts. Recently, the Ethereum price experienced a notable 8% drop, sparking concerns among some investors. However, many seasoned traders are looking beyond this immediate correction. They see this dip as a crucial retest before a potential surge. In fact, they predict an ETH price breakout towards new all-time highs, with the ambitious target of $10,000 ETH firmly in sight. This article delves into the recent market movements and expert analyses, exploring why optimism prevails for Ethereum’s future trajectory.

Ethereum Price Drops 8% Amidst Market Volatility

On Tuesday, Ether (ETH) saw its value decrease significantly. The Ethereum price dropped over 8% from Monday’s highs. It fell from above $4,300 to trade at $3,940. This correction triggered substantial activity across the broader crypto market. Traders closely monitor such movements. Despite this downturn, many analysts maintain a bullish outlook for ETH. They believe the price will climb higher, provided key support levels hold firm.

Widespread Liquidations Impact Ethereum

Ether’s bearish performance coincided with considerable liquidations across the crypto ecosystem. Data from CoinGlass reveals more than $650 million in leveraged crypto positions were liquidated within 24 hours. A significant portion, $455 million, represented long liquidations. For Ether specifically, Ethereum liquidations amounted to $114.5 million. This figure continued to rise at the time of publication. Such liquidations indicate that long traders were unprepared for Ether’s decline below $4,000.

The largest single liquidation order occurred on the OKX crypto exchange. It involved an ETH/USD pair valued at $5.5 million. The CoinGlass liquidation heatmap illustrated several bands of buyer interest below the spot price. Bid orders exceeding $743 million sat between $3,670 and $3,800. This suggests that the current correction might find strong support within this range.

Expert Traders Predict ETH Price Breakout to $10,000

Market analysts generally agree that the Ethereum price is undergoing a technical correction. This retest of key support levels often precedes a resumption of an uptrend. Michael van de Poppe, founder of MN Capital, noted Sunday’s drop saw the ETH/BTC pair fall to 0.032. He described this as an “ideal zone for buys.” Van de Poppe expressed confidence in a trend switch. He stated, “It needs a higher low and then we’re off toward new highs.”

Analyst Insights on Ethereum’s Path to $10K

• Michael van de Poppe: Identifies 0.032 as an optimal buying zone for ETH/BTC, expecting a trend reversal after a higher low.
• Daan Crypto Trades: Agrees the 0.032 level has held well. He stresses the need for ETH/BTC to break above 0.041 for continued uptrend.
• Titan of Crypto: Highlights the Relative Strength Index (RSI) breaking a multi-year downtrend for ETH/USD. This indicates a massive ETH price breakout is imminent. His fractal analysis suggests an upside target between $8,000 and $10,300, based on Fibonacci levels. He boldly stated, “#ETH breakout is loading.”
• Chimp of the North: Predicts Ether’s downside is capped at $3,800. He expects a retracement to this support level before a rally towards $5,000 and beyond.

These expert opinions collectively point towards significant upside potential. Many believe the path to $10,000 ETH is becoming clearer.

The Bull Flag Pattern Signals Potential $10,000 ETH Target

From a technical standpoint, the Ethereum price remains within a significant bull flag pattern. This pattern is visible on the weekly time frame. A bull flag is a bullish setup. It forms when the price consolidates inside a down-sloping range following a sharp upward movement. Ether is currently retesting the lower boundary of this flag. This boundary, positioned at $3,870, acts as immediate support.

Technical Indicators and Future Outlook

The ETH bull flag pattern suggests a strong continuation of the uptrend. The pattern will resolve once the price surpasses the upper trendline, which sits at $4,440. A successful breakout opens the door for the uptrend to continue towards the technical target of the bull flag. This target is an impressive $10,050. This represents a 164% increase from the current price. Such a move would firmly establish $10,000 ETH as a reality.

Conversely, the Relative Strength Index (RSI) has fallen. It dropped to 54 from 74 over the last seven weeks. This indicates that the current correction might persist longer. Profit-taking activities could be a factor. A daily candlestick closing below the $3,800 support level would pose a risk. It could push Ether’s price first to the 20-week Simple Moving Average (SMA) at $3,700. Subsequently, it might fall further to $3,500. Investors should monitor these critical levels closely.

Conclusion: Awaiting the Next Ethereum Price Move

Despite the recent 8% drop and significant Ethereum liquidations, the prevailing sentiment among traders remains optimistic. Technical patterns, such as the ETH bull flag, suggest a strong potential for an ETH price breakout. Many analysts are eyeing a target of $10,000 ETH. However, the market remains volatile. Maintaining key support levels, particularly around $3,800, is crucial for this bullish scenario to unfold. As always, every investment and trading move involves risk. Readers should conduct their own thorough research before making any decisions. The coming weeks will reveal if Ethereum can successfully navigate its current correction and launch towards new highs.