Ethereum Price Could Hit $850: Analyst Explains How

The crypto market's big push on Jan. 14 that boosted Ethereum (ETH) to $165 and continued to try $180 after a few days have now strapped the number one altcoin to the $160 region. Yesterday, it tested the $170 mark, which it did on Tuesday as well, but failed to hold above it in both instances.

High expectations for the crypto market this year, especially for the flagship crypto Bitcoin (BTC), have led plenty of analysts to express the same bullishness for ETH. In January alone, many have anticipated for ETH to already be at $200. Now a new prediction places a much higher bet on Ethereum's price -- $850.

Galaxy, a popular trader who forecasts BTC to go parabolic if it breaks a trendline on a log chart, has a prediction for ETH to go parabolic too. Galaxy tweeted an Ethereum and Tether (ETH/USDT) weekly chart that shows ETH is on the brink of breaking a downtrend delineated by a trendline that goes back to 2018. Tether is a stable coin that is said to be backed by the US dollar ($1 for 1USDT).

"ETH is weeks away from breaking out its two-year downtrend. Possible Bull signal incoming next week. February is take-off month," Galaxy's tweet reads.

Breaking the trendline Galaxy drawn would mean a price above $200 by February, and if it does take off by that time, an $850 ETH would be seen by either August or September.

Of course, this is not the only prediction for ETH that go beyond $200. On Monday, Satoshi Flipper doubled down on ETH/USDT at $335. The crypto analyst with 39K followers on Twitter believes that BTC's halving will be the catalyst for big crypto moves this year.

There is also a case for a trillion-dollar market cap for Ethereum that was published by Mythos Capital founder Ryan Sean Adams. Adams' hypothesis is that ETH will reach a market cap comparable to Saudi Aramco because of its increasing use, especially with DeFi or decentralized finance, and mass adoption.

For ETH to capture at least 51 percent of the money supply of a country like Argentina, it would need 13.58B DAI (the stable coin created by MakerDAO) and that billions of DAI would expand the economic bandwidth of ETH and for that to happen ETH needs to be priced at least $2,500 to $10,000.