Ethereum follows S&P 500 with potential to hit $10,000

Ethereum’s (CRYPTO:ETH) recent performance has closely mirrored the SP 500, sparking speculation that this trend could lead to a long-term price increase.

According to analysts, Ethereum’s correlation with the stock market reflects optimism, particularly as it has been trading below its all-time high of $4,800 since November 2021.

The continued alignment with the SP 500 suggests that Ethereum may see a significant surge if this trajectory holds.

The possibility of Ethereum reaching $10,000 is bolstered by its market behavior, despite persistent short interest.

Traders are betting on a price decline, yet historical patterns indicate that Ethereum often experiences sharp rallies when these positions are cleared.

The recent uptick in liquidations, captured on the liquidation map, hints that Ethereum could be on the verge of a substantial price movement as shorts are gradually eliminated.

In addition to trading patterns, whale activity has shown confidence in Ethereum’s long-term growth.

Recent on-chain data revealed a major transaction where a whale deposited 5,000 ETH into Binance, realising a profit of $3.22 million.

The whale had earlier withdrawn ETH worth $9.02 million and re-entered the market, indicating a belief in Ethereum’s upward potential.

This movement underscores ongoing bullish sentiment among significant holders.

As Ethereum continues to align with the SP 500, investor sentiment remains optimistic, with some analysts predicting a breakthrough.

"Ethereum has been mimicking the SP 500, and this could be the last dip before it triples and hits $10,000!" stated Ali, an analyst on X.

This outlook reflects growing interest in Ethereum’s price potential, as many investors monitor its relationship with traditional markets.

At the time of reporting, the Ethereum price was $2,510.11.