Ethereum News Update: Optimistic Trends for Ethereum Face Downside Threats as $7,000 Milestone Approaches

Ethereum's latest price movements have sparked comparisons to both gold and

before their notable breakouts, with some analysts indicating the digital asset may be on the verge of a major upward move. Ether (ETH) climbed 4.7% within a single day as of Monday morning, outpacing the overall crypto market during a turbulent October, according to a Yahoo Finance report . Chart analysts point out that ETH's current technical setup resembles gold's 2025 breakout as well as Bitcoin's pattern prior to its halving, fueling speculation that may soon the $7,000–$8,000 range by December, the article notes.

The first similarity is found in Ethereum's price formation, which is said to echo gold's consolidation phase before its breakout. According to X user Merlijn The Trader, cited by Yahoo Finance, ETH has formed three upward-biased peaks over two years, followed by a period of consolidation between $3,700 and $4,700 since July—mirroring gold's pre-2025 rally structure. Still, experts warn that a decisive move above the descending channel is needed to confirm this pattern. Valdrin Tahiri from CCN pointed out that while the setup is promising, ETH's inability to break out of the channel has resulted in fading momentum, with lower highs hinting at possible trend weakness.

The second comparison comes from Bitcoin's 2024 trajectory. Kamran Asghar pointed out that Ethereum's rally in July and August, followed by a pullback and then a period of stabilization, closely resembles Bitcoin's price action leading up to its halving, as reported by Yahoo Finance. Should this pattern repeat, ETH could trace a similar post-halving surge as BTC, with Asghar forecasting a $7,000–$8,000 target by year's end. However, Ethereum's on-chain data presents a mixed outlook. Although ETF outflows have weighed on ETH, blockchain data indicates that large investors are accumulating. A "triple bottom" formation has appeared around $3,750–$3,800, and traders are watching for a potential rally if ETH can surpass $4,000, according to a CryptoNews article

. Glassnode's findings reinforce this, showing that major holders are increasing their positions, as noted by CryptoNews.

Despite these optimistic indicators, Ethereum still faces challenges. The asset has dropped 6.5% since the beginning of October, trading near $3,957 at the time of writing, according to CryptoNews. Broader market instability, particularly due to U.S.-China tensions, has also affected cryptocurrencies. While Bitcoin has held steady around $111,300, Ethereum's recent declines highlight its sensitivity to global economic shifts. Experts remain split: some believe ETH could reach $10,000 if the gold and Bitcoin parallels play out, while others caution that a continued downtrend could push prices to $3,500, Yahoo Finance concludes.