Ethereum price rally hints at a shift from underperformance in 2024 to an explosive start in 2025. As bulls prepare for a new 52-week high, a prolonged rally could result in a new ATH in 2025.
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
As Bitcoin BTC $105 166 24h volatility: 0.7% Market cap: $2.09 T Vol. 24h: $66.37 B nears the $100,000 mark, Ethereum ETH $3 348 24h volatility: 2.1% Market cap: $404.31 B Vol. 24h: $30.59 B has crossed above the $3,600 barrier. With the bullish trend gaining momentum, the Ethereum market cap is closing towards the $450 billion mark.
Over the past week, the Ethereum price managed to bounce 8.5% and continues the bullish recovery this week. As the positive start to the week hints at an extended rally, the Ethereum price analysis projects a potential price trend to the $4,000 mark.
In the 4-hour price chart, the Ethereum price action showcases a bullish recovery, surpassing the crucial supply zone present at the $3,500 mark. Based on the Fibonacci levels, the bullish trend in Ethereum has sustained a dominance above the 50% Fibonacci level at $3,604.
The boost in buying pressure has driven the 4-hour RSI line into the overbought zone. Furthermore, the 50 and 200 EMA lines in the 4-hour chart have given a golden crossover.
Hence, the technical indicators are turning bullish amid the recovery run and signal a buying opportunity. Currently, Ethereum is trading at $3,666 as it faces an early high price rejection from the 61.80% Fibonacci level at $3,723.
As the Ethereum bulls are struggling to cross beyond the $3,700 mark, a short-term pullback is possible. This will prolong the consolidation range between the 50% and 61.80% Fibonacci levels.
The breakout of either of the crucial bounded lines will determine the fate of the Ethereum price trend. A bullish breakout is likely to challenge the previous swing high at $4,109.
On the flip side, the crucial support remains at $3,500.
Over the past 7 days, the Ethereum balance by holdings in USD reflects a surge in whale holdings. On December 30, the total balance between $100,000 to more than $10 million stood at $442.67 billion.
This has risen to $479.99 billion, increasing a massive increase of $37.32 billion. The major shift comes in the category between the price band of more than $10 million in investment. This has risen from $379.07 billion to $411.91 billion.
The $100,000 to $1 million price band increased from $27.81 billion to $29.91 billion. Meanwhile, the $1 million to $10 million price band has now reached $38.13 billion, starting from $35.79 billion a week before.
As the on-chain data suggests a boost in large investors, the institutional support is back at 2. On Friday, Jan. 3, the daily net inflow of U.S. Ethereum spot ETFs stood at $58.79 million.
With a strong closing, the weekly inflows registered a net outflow of $38.20 million. Currently, the total net assets stand at $13.03 billion, a significant increase from $6.94 billion in the last two months.
Ethereum’s bullish trend remains strong, with technical indicators and on-chain data showing increased investor confidence. A breakout above $3,700 could target $4,109, while support at $3,500 provides a safety net. Furthermore, the institutional inflows and whale activity bolster the recovery outlook.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
