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.
As Bitcoin BTC $85 886 24h volatility: 1.6% Market cap: $1.71 T Vol. 24h: $28.45 B nears the $100,000 mark, Ethereum ETH $1 644 24h volatility: 0.6% Market cap: $198.50 B Vol. 24h: $14.12 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.
Ethereum Price Trajectory to $4,000
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.
Major Ethereum Balance Holdings Rise to Almost $480 Billion
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.
Ethereum ETFs on a Rocky Road
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.
Conclusion
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.
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