Ethereum: support defense could lead to 150% price increase

All eyes are currently on Ethereum (ETH), despite a 2% drop last week. Even with the loss in value, traders strongly defend the crucial $2,400 support levels and have not let the price fall below this value.

The price of Ethereum managed to reverse its downward trend and reach US$2,500 over the weekend. This movement led analysts to predict that ETH could register 150% price gains, which would take it to reach US$6,000.

Ethereum heading towards US$6,000?

Defending this prediction is famous cryptocurrency trader Ali Martinez, who published an analysis of ETH on his X account. According to Martinez, the charts show an attractive risk-reward setup for ETH, with the possibility of opening a long position.

Martinez revealed his trading approach by setting a stop-loss below $1,880, but his price target is ambitious: $6,000.

However, for ETH price to confirm a rally towards $6,000, it first needs to overcome the crucial resistance at $2,680. Breaking this steep trendline could give buyers the upper hand, reversing the downward trend for good.

In 2024, Ethereum has underperformed Bitcoin for a long period of time, including last week. Still, Martinez points out that institutional investors remain optimistic about the altcoin. Last week, Swiss bank UBS launched its first Ethereum-based tokenized investment fund unit in Singapore.

Is ETH the next Amazon?

In addition to Martinez, Leena ElDeeb, research analyst at crypto asset manager 21Shares, believes that ETH's potential remains largely untapped. ElDeeb even compared current Ethereum, in terms of blockchain, with Amazon from the early 1990s.

“Ethereum is complex, similar to Amazon in the 1990s — promising vast potential, but less straightforward in its use cases,” the analyst explained.

Federico Brokate, vice president and head of the US business unit at 21Shares, said Amazon started out as just a small online bookstore. However, it later transitioned to become a global e-commerce conglomerate and a cloud computing giant.

Similarly, Ethereum emerged in 2015 as a blockchain that supported smart contracts. However, it now supports decentralized finance (DeFi) applications worth more than $140 billion.

“Just as Amazon has evolved beyond books to redefine entire industries, Ethereum could also surprise us with revolutionary use cases that we cannot fully imagine today,” said Brokate.

Ethereum's current market cap is $320 billion, less than 7% of Amazon's $2 trillion market cap, but Brokate highlights a significant advantage for Ethereum compared to Amazon in the 1990s.

“Amazon has grown to employ more than 1.5 million people around the world — growth that we can see paralleled in the Ethereum ecosystem,” he added.