Ethereum has been showing some interesting patterns lately, hinting at a potential price surge. Let’s dive into what’s happening.
Capitulation Candles: A Pattern Repeats?
Crypto analyst Ted Pillows has noticed something interesting: Ethereum seems to be following a repeating pattern involving “capitulation candles.” These candles mark periods of intense selling pressure, often indicating a market bottom. Over the past two years, Ethereum has experienced three of these capitulation events, each followed by a massive price rebound of around 100%.
- Q1 2024: Capitulation followed by a 100% rally to $3,950.
- Q3 2024: Another capitulation, again leading to a similar upswing.
- Early 2025: A third capitulation has just occurred, suggesting a potential repeat of the pattern.
Another 100% Rally on the Horizon?
Pillows believes this latest capitulation signals another significant price increase for Ethereum. If the pattern holds, we could see a 90-100% price jump in the next 8-12 weeks. This would push Ethereum past its current all-time high.
Potential Price Target: Pillows suggests a potential price target of $8,000. However, there might be some resistance around $3,950 – a level that has previously stalled price increases. A temporary pullback is possible before any sustained upward movement.
Institutional Investors are Buying the Dip
Interestingly, even with the recent price dip, institutional investors are piling into Ethereum. Spot Ethereum ETFs have seen massive inflows, with over $513.8 million in the last six trading days. BlackRock alone accounted for a significant portion of this, acquiring $424.1 million worth of ETH. This suggests strong belief in Ethereum’s long-term potential.
The Bottom Line
While Ethereum is currently trading around $2,725, the recent capitulation and institutional buying activity are fueling speculation of a significant price increase in the coming months. A 100% rally is certainly a possibility, but it’s important to remember that the crypto market is inherently volatile, and predictions are not guarantees.
