3 Signs That Forecast Ethereum Price is Ready to Hit $5,000

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have witnessed the rise and fall of many digital assets. However, Ethereum‘s recent rally to $4,000 has caught my attention, and I firmly believe that it could trigger its next leg and tag $5,000.

Following the Bitcoin crash on December 10, many altcoins suffered significant losses. In stark contrast, Ethereum displayed resilience and has initiated a recovery process. This development goes against the expected trend of Ethereum’s performance in 2024 as a whole. However, three distinct indicators have surfaced, implying that Ethereum’s recent surge to $4,000 is merely the first step and could potentially initiate its next phase, pushing it towards $5,000.

Key Signals That Hint Ethereum Price Could Explode

Examining Ethereum’s infrastructure reveals robust user engagement as the altcoin market rally persists. The data indicates a consistent increase in network expansion and active user addresses over the past couple of months. Despite Bitcoin’s recent downturn, Ethereum’s price and its investors exhibit resilience, hinting at potential price growth ahead. Moreover, the surge in Network Growth implies an influx of new users joining the network, indicating fresh funds are being directed towards it. Consequently, a positive trend seems imminent.

In recent times, it appears that large investors, or “whales,” have been actively purchasing Ethereum. This can be observed through on-chain data, as the number of wallets containing between 1,000 and 10,000 ETH coins has risen from 13.2 million to 14.23 million over the past few weeks.

In the same vein, individuals owning between 10,000 and 100,000 units have boosted their holdings from 24.87 million to 24.97 million. This increase in holdings by these ‘whales’ indicates that they are optimistic about the coin’s potential for further growth. It is worth noting that some of these whales have been holding onto this coin for over a decade, witnessing its rise from under $50 to nearly $4,000 as it stands today.

Following a less-than-enthusiastic response from Wall Street, there are indications that investors are now purchasing Ethereum ETFs on the spot market. Notably, these funds have experienced inflows for three consecutive weeks, accumulating a total net asset value of $12.46 billion.

The cumulative inflows stand at over $1.8 billion, a figure that may continue growing. One potential catalyst is that the SEC may approve staking of these ETFs, which will attract more capital. 

Technical Analysis: Ethereum Price Eyes $5,000

As a crypto investor, I’ve been closely watching Ethereum’s price movements, and based on the technical analysis I’ve done, it appears there’s potential for further growth in the short term. The weekly chart indicates that Ethereum has encountered some resistance at roughly $4,073. Interestingly, it hasn’t managed to surpass this level since March of this year, having tried three times without success. If we see a decisive break above this price point, it could open up the possibility of Ethereum reaching its all-time high once more at approximately $4,858.

Reflecting on the past, it seems there are indications that Ethereum’s price is shaping up as a long-term “cup and handle” chart pattern. The peak of this cup is roughly estimated at $4,858. Given the 82% depth of this ‘cup’, it suggests a potential upward trend in the future, possibly leading to an ultimate high of around $8,845 in the long run.

Another optimistic perspective is that Ether’s current price movement seems to conclude the fourth stage of the Elliot Wave structure. Typically, the fifth stage tends to be a bullish trend for any asset.

Conversely, if the price falls below the $2,132 support, it contradicts the bullish outlook. This level is significant because it marked the lowest point for the asset since August. If we see a fall below this level, there’s a risk of further decline down to $1000.

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2024-12-11 17:48