Ethereum set all-time highs on November 8th, 2021. Its highest daily closing price was $4807. Will Ethereum ever again hit its former all-time highs? If so, when exactly will Ethereum hit new all-time highs?
In this article, we start by reviewing Ethereum’s fundamentals. We re-iterate that fundamentals are not the primary driver of price. If it were the case, then ETH should have hit ATH already in 2024, with its solid fundamentals.
We then transition to ETH price analysis, with the intention to derive an answer to the question: when exactly will ETH hit new all-time highs? In answering this question, we obviously also look at the pint IF we believe ETH will ever hit ATH again, or not.
Ethereum’s fundamentals are supportive of new ATH
Ethereum is considered a groundbreaking cryptocurrency project due to several key factors.
Smart Contracts and Decentralized Applications (DApps): Ethereum introduced the concept of smart contracts, self-executing contracts with the terms directly written into code. This innovation enables the creation of decentralized applications (DApps) on its blockchain, opening up a wide range of possibilities beyond simple transactions.
Decentralized Finance (DeFi): Ethereum is a cornerstone of the DeFi movement, providing the infrastructure for financial services like lending, borrowing, and decentralized exchanges without the need for traditional intermediaries. This has significantly expanded financial access and inclusivity.
Interoperability: Ethereum is designed to be interoperable with other blockchains, fostering collaboration and compatibility between different projects and networks.
Upgrades: Ethereum has undergone various upgrades, with Ethereum 2.0 being a significant one aimed at improving scalability, security, and sustainability. These upgrades demonstrate the commitment to evolving and addressing the challenges faced by the network.
Community and Developers: Ethereum has a vibrant and active community of developers, contributors, and users. This ecosystem has played a crucial role in the ongoing development and improvement of the platform.
Before we wrap up the year, it’s time to showcase the amazing projects that received funding last quarter ⭐️ Dive into our Allocation Update: Q3 2023 blog post to learn more!https://t.co/DZGv2q1Jw4
— EF Ecosystem Support Program (@EF_ESP) December 19, 2023
Ethereum fundamentals vs. ETH price
A critical point to understand is that fundamental value doesn’t always dictate short to medium-term price movements.
That’s why fundamental analysis will never answer the question whether ETH can hit new ATH. It certainly will never be able to answer WHEN ETH can hit new ATH.
These questions can only be answered by completing fundamental analysis with thorough chart analysis.
In traditional financial markets, company performance and earnings reports can have an immediate impact on stock prices. The crypto space operates in a realm where speculative sentiment, market trends, and macroeconomic factors often take precedence.
Fundamental developments like technological upgrades, partnerships, or protocol enhancements may indeed enhance the long-term viability of a cryptocurrency project. However, their impact on price is frequently delayed and subject to broader market dynamics.
Ethereum’s ATH price forecast based on fundamentals
Applying this principle to Ethereum, a prime example emerges. Ethereum is a powerhouse of decentralized finance (DeFi) and smart contract functionality. Despite this, Ethereum’s short to medium-term price movements are heavily influenced by market sentiment, speculative trading, and crypto market momentum. This is evident in the historical performance of Ethereum. The fact of the matter is that fundamental advancements, such as the Ethereum 2.0 transition, haven’t always translated to immediate price surges.
Still, the recognition of Ethereum’s robust fundamentals positions it as a long-term player. Our forecast of a new all-time high (ATH) in 2025 or 2026 aligns with the understanding that, over time, the market tends to reward projects with solid fundamentals as they contribute to the sustained growth and adoption of the platform. This forecast reflects a belief in Ethereum’s enduring strength rather than a prediction of short-term price movements based solely on immediate fundamental developments.
Will Ethereum ever set new all-time highs?
The short answer: YES, Ethereum will set new all-time highs, in the not too distant future.
There is too much momentum in markets for ETH not to hit new ATH.
In order to answer the question ‘will ETH ever hit new ATH‘, we have to look at the weekly chart.
It is clear from the long term ETH chart that a long consolidation is ongoing which has some similarities with the consolidation that occurred back in 2018/2019, after ATH were hit in the last days of 2017 / first days of 2018.
The current setup on Ethereum’s price chart is bullish, it’s a simple as that. Only if ETH falls below $900, which is seems very unlikely to happen in the coming 2 to 3 years, will the bullish setup invalidate.
Moreover, as seen, there is a very important price point that will act as the ‘line in the sand’ which is $3525.50. Once past this price point, it is a given that ETH will hit ATH.
With the bullish long term chart reversal, and the pre-requisite that ETH will clear $3525.50 sooner or later, we believe that ETH will hit ATH in the not too distant future.
When exactly will Ethereum set new all-time highs?
The next question that comes up, given the analysis discussed before, is WHEN ETH can set new ATH?
Investors nowadays tend to set expectations very high. They not only want to know WHEN but they also want the answer to be more precise. Many will ask WHEN EXACTLY will Ethereum print new all-time highs?
Nobody has a crystal ball. Any answer to the ATH prediction question has to be prefaced by the underlying assumptions as well as confidence levels.
We are saying, with a high level of confidence that Ethereum will move to new ATH in 2025.
The daily ETH chart helps us tremendously to come with this forecast. The rising channel on Ethereum’s chart says it all: an uptrend, though a soft one, is headed towards $3525.50. That’s where Ethereum will hit big resistance. We expect $3525.50 to be hit in 2024, with a very high level of confidence.
Our base case outcome is a drop after $3525.50 is hit. This should result in a consolidation and fast move to previous all-time highs at $4807 in 2025. Frankly, the chart setup confirms our thinking.
One very important note: many investors tend to mix up chart analysis with technical analysis. The problem with technical indicators is that they are lagging. They are also not able to identify price targets, mostly not.
All charts shown above are based on advanced ETH charting analysis, not ETH technicals.
New ATH in ETH: if, when, conclusion
In summary, Ethereum’s journey to new all-time highs is like a puzzle where its strong foundations meet the unpredictable nature of the crypto market. While Ethereum is known for its smart contracts, DeFi features, and regular upgrades, predicting its short-term price changes involves understanding how people speculate in the crypto world.
Our belief that Ethereum will reach new all-time highs in 2025 or 2026 comes from looking at both its lasting strengths and how the market is right now. We use charts to help us see where the price might go. The $3525.50 price is crucial, and when Ethereum passes that point, it’s a big deal. While it’s hard to say exactly when this will happen, we’re quite sure it will. Our forecast is like saying we expect a big jump in 2025.
As we keep exploring the world of crypto, watching Ethereum’s comeback isn’t just about numbers. It is about understanding the energy and strength in this special project. When exactly Ethereum reaches new all-time highs in 2025 will be part of the natural flow of the market. We will share updates, insights, and a better understanding of the crypto world in our ongoing analysis.
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