Ethereum's trajectory echoes Bitcoin's 2018-2021 climb, hinting at a possible 1,110% increase in value.
In a recent development, Ethereum's price has soared past the $4,000 mark and is currently trading above $4,200—a level last seen in 2021. This price surge comes after a significant 342% rebound from Ethereum's steep 83% decline from its 2021 peak.
Crypto analyst Merlijn The Trader has noted that Ethereum's current market cycle closely mirrors its 2017 cycle, suggesting a potentially strong rally ahead. Merlijn's analysis points to a technical setup where Ethereum is poised for a macro breakout, driven by a bullish monthly candle and a fresh MACD crossover.
If Ethereum breaks above the $4,000 to $4,200 resistance zone, it could trigger a rally towards approximately $16,700 by 2025–2026, representing over 350% upside from current levels.
Merlijn's comparison to the 2018–2021 run reveals similarities in terms of accumulation phases, breakout setups, and bear traps. The strong monthly bullish candle and MACD bullish crossover signal momentum akin to earlier bullish cycles, such as the 2020-2021 run when ETH gained about 2,000%.
The current cycle benefits from strong institutional inflows into Ethereum ETFs, the maturity of the DeFi ecosystem, and active daily users. Unlike the 2017 rally, which was largely retail-driven, the current cycle suggests a more sustainable and mature growth environment.
The recent price rally of Ethereum can be mostly attributed to institutional buys in Spot Ethereum ETFs. Since then, Ethereum has reclaimed its 50-week moving average and mounted another rebound, with the latest move being the most recent rally back above $4,200.
The surge in price has injected confidence into the market, especially among retail traders. Mentions tied to buying, optimism, and higher price expectations have surged sharply. Data from on-chain analytics platform Santiment reflects a dramatic rise in bullish activity across social channels.
This macro breakout setup is poised to spark significant altcoin season momentum, with Ethereum possibly leading the rally owing to better scaling solutions and decentralized finance adoption. If the prediction holds true, Ethereum could potentially reach new heights in the coming years.
[1] Merlijn The Trader, Twitter, 2025. [2] CoinDesk, 2021. [3] TradingView, 2021. [4] Santiment, 2021.
Featured Image: Unsplash Chart: TradingView
Note: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any financial decisions.
- Merlijn The Trader predicts Ethereum could reach $16,700 by 2025-2026, which represents over 350% upside from current levels, based on a technical setup reminiscent of the 2017 cycle.
- The recent surge in Ethereum's price, due in part to institutional buys in Spot Ethereum ETFs, has injected confidence into the market and sparked a rise in bullish activity across social channels.
- With Ethereum potentially leading a rally, this macro breakout setup is poised to spark significant altcoin season momentum, driven by better scaling solutions and decentralized finance adoption.
- The price surge of Ethereum can be mostly attributed to institutional buys, the maturity of the DeFi ecosystem, and active daily users, suggesting a more sustainable growth environment compared to the 2017 rally, which was largely retail-driven.
