After experiencing a 15% pullback, Ethereum’s price has found support and is gearing up for a potential rally toward $5,000. As of December 27, Ethereum is trading at about $3,375, a figure that certainly raises eyebrows but importantly sets up a robust platform for an upward trajectory. With a market capitalization of $406 billion and a daily trading volume of $23 billion, Ethereum is demonstrating resilience at this critical support level.
What’s next for ETH? The indications are pointing to an impending rally that could catapult Ethereum to new heights.
One of the positive signs includes the broader altcoin market, tracked by the TOTAL2 index, which recently retested its previous all-time high (ATH) nearing $1.6 trillion. This performance hints strongly that Ethereum could soon surge toward $5,000. Additionally, the ETH/BTC trading pair reveals a macro reversal pattern, coupled with bullish divergence on the weekly Relative Strength Index (RSI), which further supports this optimistic forecast.
Another factor contributing to this bullish perspective is the tactical shift by Ethereum whales. Over the past two years, Bitcoin has largely outpaced many major altcoins. However, significant investors are now rebalancing their portfolios, likely fueled by the anticipation of a robust altseason. Ethereum’s performance has bolstered this enthusiasm, with its Open Interest (OI) and trading volume reaching an unprecedented high, exceeding $23 billion.
So, what’s driving this heightened demand for Ethereum? Insights from Coinglass reveal a marked decrease in the total supply of Ethereum on centralized exchanges (CEXes), falling from 16.12 million on November 29 to just 15.3 million. This significant drop is primarily due to surging interest from U.S. spot Ether ETF issuers.
U.S. spot Ether ETFs, including those spearheaded by BlackRock’s ETHA and Fidelity’s FETH, have attracted over $2.64 billion in net inflows since their launch. Together, they now manage around $12.01 billion in assets. Just on Thursday alone, these ETFs reported an impressive $117 million in net inflows and $390 million in trading volume. On-chain data indicates that 1,500 Ether, valued at approximately $5.21 million, was withdrawn from Binance in the past 24 hours. This trend further supports the narrative of increased demand and diminished selling pressure.
Ethereum’s recent price action indicates it has broken free from a year-long declining trend. This breakout is a positive indicator of strong bullish potential. It’s also noteworthy that Ethereum has remained above its 50-week Moving Average for the past two months, reinforcing the bullish case. Consequently, this positions Ether’s price well for a target of $5,232, aligning with the 1.618 daily Fibonacci Extension.
As Ethereum shows resilience and readiness for a robust close to the year, those interested in the crypto space would do well to keep an eye on this development.
For those asking about future price forecasts, predictions suggest that Ethereum could reach up to $6,925 by 2025 and maybe even cross $15,575 by 2030. Currently, the price of Ethereum hovers around $3,383.96, a figure that could quickly change as market conditions evolve.
Stay informed with the latest trends, insights, and expert analyses in the Ethereum market to ensure you’re not caught off guard as this situation unfolds.
