5 Reasons Ethereum Price Can Jump 20% By Jan. 1

As a seasoned researcher with years of experience in the crypto market, I can confidently say that the bullish outlook for Ethereum‘s price is quite promising. My personal journey in this dynamic field has taught me to always keep an eye on both fundamentals and technical indicators.

As an analyst, I’m observing that Ethereum’s price trajectory remains uncertain, with persistent profit-taking and a dampened mood within the cryptocurrency sector. However, positive fundamentals such as increasing inflows into spot ETH Exchange Traded Funds (ETFs) and negative net exchange flows, along with the MVRV technical indicator, suggest a possible recovery by January 1st.

Bullish Catalysts For Ethereum Price

As a seasoned crypto investor, I’m optimistic that Ethereum’s price could surge by at least 20% within the coming days, before the year draws to a close. Here are my reasons:

Spot Ethereum ETFs are seeing more investor interest.
Data shows that crypto exchanges are seeing Ethereum outflows.
Q1 is Ethereum’s best quarter of the year.
Ether’s MVRV ratio has dropped to 1.8%.
Ether has strong technicals.

1. Spot Ethereum ETFs Are Seeing Inflows

According to SoSoValue’s data, there was an inflow of approximately $130 million into spot Ethereum ETFs on Monday, despite a decline in the coin’s value. These new investments partially counteracted the outflows that occurred over the past two days. As a result, the total inflows now exceed $2.46 billion, with the total assets under management standing at around $12 billion.

2. ETH Exchange Outflows Are Rising

According to data from IntoTheBlock, there’s an increase in the movement of Ethereum away from exchanges, indicating that investors are stockpiling the coin. The current exchange netflow stands at approximately 49,600 ETH, which is its lowest level since December 19. This accumulation could potentially contribute to a rebound in the price of Ethereum.

3. Q1 Is Ethereum’s Best Quarter

Another explanation for why ETH’s price might increase again is because historically, the first quarter tends to be its strongest period of the year. In fact, ETH experienced a 60% growth during Q1 of this year and surged by 52% in the same timeframe in 2023. On average, it has risen by approximately 92.75% in Q1 over the past eight years. As such, there is a good chance that the coin may see another increase based on these trends.

4. ETH Price MVRV Indicator Is At 1.54%

Currently, the MVRV indicator for Ethereum stands at 1.54. This measure examines an asset’s market value versus its realized value, and generally speaking, when the asset exceeds 3.8, it may be overvalued. Given that Ethereum is currently at 1.54 on this scale, it suggests the coin might still be considered undervalued.

5. Ethereum Price Technicals Suggest a 20% Surge Is Possible

The weekly chart shows that the ETH price retreated after facing strong resistance at about $4,000, which is about 20% above the current level. Ether has remained above the 50-week moving average and the ascending trendline that connects the lowest levels since June 2022. This performance means that bulls remain in control for now.

Consequently, it’s likely that the coin will revisit approximately $4,080, aligning with the overshoot level of Murrey Math Lines (MML) and the third resistance of the Woodie pivot point. Surpassing this level could potentially propel ETH price towards our predicted $5,000 mark.

If the Ethereum (ETH) price falls below both the upper limit of the MML trading range and the initial Woodie support level at $2,812, the bullish outlook could be disproved. This decline might push the ETH price down to the rising trendline around $2,500.

2024-12-24 14:16