Ethereum is experiencing a short-term dip as the recent bull run slows down.
Bitcoin’s sharp 6% drop has upset the market, sending altcoins like ETH into chaos and resulting in billions of dollars in liquidations.
However, the long-term outlook for Ethereum and the overall crypto market still looks strong. Technical analysis suggests that a major five-year price pattern breakout could potentially push Ethereum to a $15,000 target.
We’re also seeing a new project PlutoChain ($PLUTO) that might gain traction in the upcoming weeks.
With its potential to add smart contracts to Bitcoin and expand the use cases of its network, it may be worth keeping an eye on how it develops.
Let’s check out all the details.
Ethereum Takes a Short-Term Hit – Technical Charts Reveal What It Could Mean
Ethereum’s price has dropped 8.7% from its peak this year, largely influenced by Bitcoin’s price movements.
After hitting an all-time high of $104,200, Bitcoin slipped below $98,000. Ethereum, which tends to mirror Bitcoin's trends, also tumbled as a result.
This downturn caused a wave of liquidations, with many bullish traders caught off guard.
Ethereum's long positions saw nearly $200 million in liquidations, surpassing Bitcoin’s $131 million. Short sellers also took a hit, losing $27 million in the last 24 hours.
While the recent drop impacted the market, it appears to be a short-term fluctuation rather than a fundamental shift. For long-term investors, this dip could present a buying opportunity that sets the stage for a major breakout.
Ethereum’s strong fundamentals, coupled with institutional support from players like BlackRock, keep the long-term outlook optimistic.
Technical analysis suggests Ethereum could potentially hit $15,000, with the long-term forecast even pointing to a rally toward $111,728.
Achieving such a milestone would see Ethereum’s market cap skyrocket from $448 billion to over $15 trillion, surpassing giants like Apple, NVIDIA, and Microsoft combined.
The weekly chart dating back to 2015 highlights Ethereum’s predictable price cycles. Between 2015 and 2017, Ethereum formed a bullish flag pattern, which typically signals a strong breakout. The coin rallied to $313 by the end of this cycle.
From 2020 to 2022, Ethereum created the pole of a bullish pennant pattern and is now forming the triangle section. Historically, pennant patterns also lead to upward breakouts.
However, a more realistic near-term goal is $15,313—an increase of 305% from its current price. This kind of rally is plausible, as seen with altcoins like Stellar and Ripple, which surged over 500% in November.
Could PlutoChain Be Bitcoin’s Gateway to dApps and Smart Contracts?
PlutoChain ($PLUTO) is a new and robust Layer-2 solution that could release Bitcoin’s potential by introducing smart contracts and decentralized applications (dApps) to its network.
While Bitcoin’s design has made it a trusted store of value, its 10-minute block time and limited functionality have held it back from supporting more complex applications.
This gap has been filled by newer blockchains like Ethereum and Solana, which offer faster transactions and advanced features for developers.
PlutoChain could turn things around. With a 2-second block time on its L2 chain, it may enable smart contracts to operate on Bitcoin’s secure infrastructure.This could open the door to new Bitcoin-based applications.
Early tests have shown promise, with the testnet reportedly processing up to 43,000 transactions per day, demonstrating potential real-world adoption.
Another notable aspect of the project is its focus on community involvement. From the start, PlutoChain has enabled its users to vote on protocol updates to create a sense of shared ownership and direction within its network.
Security is a major focus for PlutoChain, with audits conducted by SolidProof, QuillAudits, and Assure DeFi to ensure a robust and trustworthy system.
Its compatibility with the Ethereum Virtual Machine (EVM) could also allow Ethereum-based applications to migrate seamlessly to Bitcoin’s network. This integration may combine Bitcoin’s stability with Ethereum’s adaptability.
For years, Bitcoin has been seen as a digital gold standard, a secure and decentralized store of value, but one that lacks the flexibility of modern blockchains.
PlutoChain’s approach could change this by potentially making Bitcoin a hub for innovation.It could create opportunities for developers to build advanced applications, bringing a new level of functionality to the world’s most trusted cryptocurrency.
The Bottom Line
Technical data shows that $15,000 for ETH isn’t out of reach – in fact, we might see it happen in the first quarter of 2025 if Bitcoin continues its rally.
There’s also a new project that’s preparing its mainnet launch – PlutoChain ($PLUTO).
With its plan to add smart contracts to Bitcoin’s network and potentially open the doors for developers to build new dApps on it, it may be worth keeping an eye on it in the next couple of weeks.
This article do not offer financial advice. Cryptocurrencies can be unpredictable and carry risks. It is important to conduct thorough research before acquiring any crypto asset. Forward-looking statements carry risks and are not guaranteed to be updated.
