The excitement around Ethereum’s breakout is fueled by strong momentum, with the price pushing higher after October’s breakout. The analyst has set a target range of $6.8K to $8.5K based on Fibonacci retracement levels, especially following the market’s recovery from the 2022 bear market.
Market Factors Driving the Surge
Several factors are contributing to Ethereum’s rise, including Layer 1 revenue growth, competition from Layer 2 solutions, and the upcoming Dencun upgrade, which is expected to lower fees for Ethereum users in March 2024. Despite lower fees, Ethereum’s base layer has still generated around $10.9 million in December, indicating strong underlying demand.
