Ethereum Price Analysis: Will ETH Hit $5,000 in 2024?

Ethereum (ETH) has recently pulled back by over 15%, now trading at approximately $3,375 on Friday, December 27, during the early European session. While this may seem like a setback, it has set the stage for a potential breakout. With a market cap of $406 billion and a daily trading volume of $23 billion, Ethereum is holding steady at a crucial support level.

But what comes next? The signs point to a rally that could push Ethereum toward new highs.

ETH Rally Incoming?

The broader altcoin market, tracked by the TOTAL2 index, recently retested its previous all-time high (ATH) near $1.6 trillion. This setup suggests Ethereum could soon rally toward $5,000. Supporting this outlook, the ETH/BTC trading pair is showing a macro reversal pattern alongside bullish divergence on the weekly Relative Strength Index (RSI).

Ethereum Whales Shift Strategies

In the last two years, Bitcoin has outperformed most major altcoins, but whale investors are now rebalancing their portfolios in anticipation of a strong altseason. Ethereum’s recent performance adds to this optimism, with its Open Interest (OI) and trading volume hitting a record high of over $23 billion.

What’s Boosting the Demand?

Data from Coinglass shows that the total supply of Ethereum on centralized exchanges (CEXes) has dropped from 16.12 million on November 29 to around 15.3 million. This decline is largely due to increasing demand from U.S. spot Ether ETF issuers.

U.S. spot Ether ETFs, led by BlackRock’s ETHA and Fidelity’s FETH, have collectively attracted over $2.64 billion in net inflows since launching. Together, these funds now manage $12.01 billion in assets. On Thursday alone, the ETFs reported $117 million in net inflows and $390 million in trading volume.

On-chain data reveals that 1,500 Ether, worth approximately $5.21 million, was withdrawn from Binance in the past 24 hours. This trend aligns with the broader decline in Ethereum supply on exchanges, suggesting growing demand and reduced selling pressure.

Ethereum rebounds from crucial support, setting the stage for a potential rally. Read Ethereum price prediction for the latest market insights!

A Look at Ethereum’s Technicals

Ethereum’s price has recently broken out of a year-long falling logarithmic trend, signaling strong bullish potential. Additionally, Ethereum has held above its 50-week Moving Average for the last two months, further strengthening the case for a rally.

• Also Read :
•   Bitcoin Price Could Crash to $60K, Warn Experts – Here’s Why
• ,

As a result, Ether’s price is well positioned to reach $5,232 in the near term, which coincides with the 1.618 daily Fibonacci Extension.

Ethereum’s resilience is setting the stage for what could be a spectacular close to the year.

FAQs