The price of the second-ranking cryptocurrency is now below $4K for the first time in three weeks. Bitstamp data shows that ETH currently trades at $4,074 as of this writing. After setting a new peak price a little over a week ago, ETH has dipped by about 18%.
BTC And Altcoins Dip In Prices
Meanwhile, BTC’s price has also plunged below $57K, and consequently, most of the altcoins have also followed suit. The highest-ranked digital currency continues to struggle with its bullish movement despite setting a new peak price a little over a week ago. In the last 24 hours, two of the top twenty cryptocurrencies have made the highest losses.
SOL dropped 13%, while SHIB dropped 16% within the period under review. BTC and ETH have lost about 6% each, with Coinglass data indicating that more than $270m worth of digital assets have been sold across top crypto exchanges within the past five hours.
Can ETH Price Reach $11K Before Year-End?
Crypto trader and investor, Raoul Pal, has revealed that there is a close similarity between ETH’s current price action and 2017 BTC price action.
BTC gained 235% in December 2017, which pushed its price from $6K to almost $20K within six weeks. Even though the ETH price isn’t up to $6K as of now, we can still make our analysis since its price movement currently mimics that of BTC.
2017 BTC price action. Source: TradingView
There are two aspects to this analysis, the first is to determine ETH price following a 236% surge, and the second is to determine factors that can push ETH to trade at almost $20K. If ETH can surge by 235% price, it will start trading at more than $11K. But it would require a 344% surge to trade at about $20K.
Is This Achievable?
One important thing to note is that BTC is unique, and ETH cannot be compared with BTC in any way. Also, ETH has never made gains of 344%, and it’s not even likely that it would rise by 235%. ETH has only surged by 175% in 90 days, a feat that happened between august and November 2021.
Hence, it won’t be a surprise that it neither surged by 235% nor trades at almost $20K before this year ends. The best it could do is to gain 235% and trade at $11K. But it would require a never-before-seen rise of epic proportions to achieve this feat.
Coincidentally, December is the next ETH options expiry, and if the market conditions are favorable, ETH could become an $11K asset by that time. However, the market participants must play a crucial role because no price rally can happen without the involvement of many investors.
Between September 2017 and January 2018, BTC’s number of active holders shot up by more than 100%. By comparison, Ether’s wallet addresses are more than 450K as of September 2021. However, the number of active wallet holders is lower than that of BTC in 2017. ETH price won’t reach $11K by the end of this year without a change in these statistics.
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