Ethereum Nears 2021 Highs: Powerful Long-Term Structure Points to $10,000 Zone

Ethereum isn't just knocking on the door of its 2021 all-time high—it's rattling the hinges. The technical foundation suggests this isn't a fleeting pump; it's the prelude to a much larger move.

The Anatomy of a Breakout

Forget the daily noise. The weekly and monthly charts paint a clearer picture. A multi-year consolidation pattern—a giant, coiled spring—has finally started to release its energy. This isn't about chasing a meme; it's about a major asset completing a textbook re-accumulation phase.

Why $10,000 Isn't Fantasy

Measured move projections from the recent breakout point directly to the five-figure territory. The structure implies that reclaiming the old highs acts not as a ceiling, but as a launchpad. Network fundamentals, from staking yields to layer-2 adoption, provide the fuel the charts are anticipating.

The Real Test Ahead

The path won't be linear. Expect volatility—sharp corrections are features, not bugs, in crypto bull markets. The key is whether institutional flows, now more entrenched than in 2021, can absorb the selling pressure from retail traders who still think in terms of quick flips. After all, Wall Street only adopts disruptive technology once it's figured out how to charge a 2% management fee for it.

Ethereum's next leg hinges on one thing: treating the $10,000 zone not as a distant target, but as the next logical resting point in a redesigned financial stack.

Ethereum Near Historic Resistance After Long Accumulation

On higher charts, however, Ethereum’s price pattern offers a very simple reading. ethereum displayed very good growth from 2020 into 2021, but then embarked on an extended period of topping action. The next stage took it into an extended period of correction through 2022 and into 2023.

Rather than weakening and hitting new lows through its cycle, Ethereum held firm and established a base. Such formations normally indicate that there’s been continuous accumulation rather than selling.

Source: X

Also, volume patterns appear to support this hypothesis. Activity is not as low as it seemed around the 2022 lows, but it is also not indicative of extreme levels. A healthy level seems to be emerging.

For ETH to realistically project into the $8,000 to $10,000 level based on historical patterns after an extension, the level needs to be broken, and support needs to be maintained above the former all-time high. Anything less will simply see further sideways action.

Institutional ETH Holdings Signal Quiet Confidence

Price structure, of course, is only one aspect of what happens on the chain, and fund data provides another level of perspective here. CyrilXBT noted that strategic reserves and ETF funds currently hold between 6 and 6.8 million ETH.

This amounts to a considerable portion of supply in terms of what’s held by non-trader entities. What’s notable is the nature of this demand. 

Source: X

Even as the mechanics for issuing and burning are more or less balanced, the ratio of purchases to issues is still more than 1. What this means is that demand still absorbs the new supply in the sideways market phase.

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