Ethereum Continues to Shock the Cryptocurrency Markets!

Amid the wake of the cryptocurrency market’s broad correction, one altcoin stood out among the rest: Ethereum. Somewhat forgotten as an afterthought thanks to Ripple’s dramatic rise to briefly take over the number-two market capitalization rank, Ethereum recently shattered all-time records. In some exchanges, the Ethereum price hit $1,500 before it too corrected.

Despite the ensuing sharp selloff, Ethereum is back in the swing of things. At time of writing, it’s trading hands just under $1,300. Notably, Ethereum has regained the number two slot, while Ripple suffered a catastrophic loss, falling below the $100 billion psychological threshold. Moreover, Ethereum, which has broad fundamental support from true cryptocurrency advocates, has far greater sentiment.

Interestingly, one of the price targets that I heard prior to heading into 2018 was $1,500 Ethereum.

After analyzing its chart, I think this forecast is a bit understated.

The current Ethereum rally is riding off the back of a massive bullish pennant formation. The up-and-down consolidation that we saw during the second half of 2017 was actually Ethereum trading inside the boundaries of the pennant.

Now that we’ve clearly broken out of this consolidation, $1,500 Ethereum is only the beginning. At a roughly half-year interval, we should expect at least a half-year of largely bullish momentum. We could also see a massive burst in valuation as an overenthusiastic reaction to breaking out of the pennant.

My personal view is that $3,000 by the end of 2018 is the low-end target. Realistically, I believe $5,000 is within reach. Ethereum has greater fundamental support, and its relatively rare compared to so many altcoin and blockchain assets.

Moving forward, the general public looking to transition to cryptocurrency investing will likely seek high-quality names. Ethereum, currently at low four-digits, fits the bill fundamentally and psychologically.