After Thanksgiving, I was perusing the crypto space and kept seeing 2022 price targets for Ethereum (ETH) that were frankly all over the place.
I saw everything from $5K, $6K, $7K, even $14K. And with a recent price of about $4,700, I figured that these nosebleed predictions were way too bullish. And that’s coming from someone who has sung Ethereum’s praises time and time again.
I couldn’t have been more wrong. After I did a little analysis, I came up with a 2022 price target for ETH that put even these huge predictions to shame.
The Outlook For Ethereum (ETH) Is Huge
First off, I don’t like price predictions. They don’t really mean much. And in my experience, they aren’t that reliable.
But they’re fun to play around with. So, as we set out on my quest to predict the price of ETH in 2022, take my analysis with a little tongue in cheek.
Now, down to business.
Sometimes a picture is worth a thousand words...
As you take a gander at this chart, even if you’re not a technical analyst, you can clearly see that in 2021 ETH was off to the races. From a low of around $730 at the start of 2021 to a recent high of $4,892, the second biggest crypto logged eye-popping gains of 570%.
But if you look closely at the chart, there’s much more than that explosive track record. Here’s what I mean...
The chart shows that Ethereum (ETH) hasn’t gone straight up. It’s been volatile and jumped around quite a bit. But since July, when ETH has pulled back, which happened a few times, those pullbacks made consistently higher lows (the green trend line).
Is that a good thing? You bet. It means that when investors and traders sold ETH, buyers were willing to wait for only so long before they snapped up the shares. And that buying level was usually higher than the previous level.
But that’s not all. In late October, ETH blew through resistance (the red horizontal line) at $4,200 on its way to fresh new highs around $4,800 (the orange horizontal line). That’s significant because $4,200 was a resistance level established back in May that was difficult for ETH to eclipse. Now that’s it’s completed that task, the $4,200 level will likely become a new level of support. And that means it will be tough for ETH to go below that level before investors snap up more of the crypto.
But perhaps the most important takeaway from this chart is when you put all those different colored lines together. They form what’s called an ascending triangle chart pattern. And that pattern usually indicates a breakout to higher highs in the offing. And sure enough, that’s exactly what happened to ETH in late October.
But the bullish story doesn’t end there. ETH’s ascending triangle pattern is also called a “continuation pattern.” That means that once the breakout occurs, the trend that was established pre-breakout is likely to continue. And since the pre-breakout trend for ETH was bullish, the technical outlook for ETH remains bullish.
Ethereum (ETH) Price Target 2022: $27,884
So, now that we’ve established that ETH is likely moving higher in 2022 just where will it likely end up?
If I were looking to trade ETH, and not invest for the long term, which I recommend for most investors, ETH would have to take out the recent high it made at $4,800 to prove itself. And while that would be another positive for ETH, the current chart patterns don’t inform us much about a future price target.
However, if you believe that 2021 is just the beginning for ETH, you could take the recent high of $4,892 and add on the 2021 percentage gain of 570%. That would yield a 2022 price target of $27,884 for ETH.
You read that right: 2022 could bring in a price of $27,884 for ETH if it simply repeats the feats it accomplished in 2021. And if you look at 2021 as simply a jumping-off point for ETH, that $27,884 could just be the beginning. We could be looking at levels of $30,000, $40,000, and higher for ETH in 2022.
But like all predictions, you must take these numbers with a grain of salt. Make that a shaker of salt. Fact is, there’s no telling what could happen to ETH in 2022. But it’s fun to fool around trying to find out!
If you’re going to take the plunge with Ethereum (ETH), remember to only devote 1% to 2% of your portfolio to cryptocurrencies, including ETH. Regardless of price target predictions, the above charts show that ETH is highly unpredictable and extremely volatile. So, if you invest in crypto, invest for the long term. And make sure you’re okay with losing all of it. That way you’ll be able to sleep at night.
Disclosure: This contributor may own cryptocurrencies mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.