Ethereum Price Analysis: Will ETH Reach $4,000 in January?

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Despite Bitcoin‘s climb back to $100K, Ethereum (ETH) has difficulty breaking through crucial resistance points, hinting that a potential drop might occur before Ethereum tests the $4,000 level again. A closer examination of Open Interest and momentum indicators suggest a decrease in momentum, which may foreshadow an adjustment period.

Ethereum (ETH) Price Today

On Monday, several leading altcoins saw a significant surge because Bitcoin reached $100K. However, Ethereum’s value didn’t change much during this time. Currently, Ethereum’s price is undisclosed at this moment and has decreased by an unknown percentage in the last 24 hours.

Why is ETH performance lackluster?

One significant factor contributing to Ethereum’s underperformance could be the insufficient number of engaged participants. This trend becomes evident when examining VeloData’s open interest, which has been decreasing, while Ethereum’s price keeps reaching new highs.

A shift like this might signal that short positions are being closed, leading to a gradual increase in price. To establish a strong uptrend, both short positions being closed and long positions being opened are necessary. Given the decline in Open Interest (OI), investors may anticipate a diminished number of eager, bullish participants in the market.

As prices increase, a decrease in Open Interest (OI) might suggest a bearish trend, but it’s also important to note that the momentum seems weak. To gain more insights, let’s delve into some technical analysis for a clearer perspective.

Ethereum Technical Analysis: Will ETH Reach $4,000 in January? 

In just seven days, January 2025 holds promising prospects for Ethereum and the broader cryptocurrency market. If certain conditions are met, Ethereum may reach a value of $4,000.

  1. Bitcoin is not driving the market lower.
  2. Ethereum whales are not actively selling but buying. 
  3. The momentum flips from bearish to bullish. 
  4. Open Interest spikes to the upside.

Looking at the graph, Ethereum’s price broke through the resistance range of $3,539 to $3,654 on January 3rd. Since then, ETH has been creating higher peaks, but the Relative Strength Index (RSI) has been forming lower peaks. This discrepancy is known as a bearish divergence and typically indicates a potential reversal or brief correction.

Given the temporary pessimistic viewpoint, drops in Ethereum might present themselves as potential purchase chances for long-term investors. So, let’s explore Ethereum price predictions for the year 2025.

Ethereum Price Prediction For January 2025

As a researcher examining Ethereum’s price trends, if the bearish divergence unfolds as expected, the selling pressure might drive the Ethereum price towards the support level of approximately $3,59 and the demand zone, which spans from roughly $3,430 to $3,470. This region presents a promising opportunity for amassing ETH at a reduced cost.

Following a rebound after accumulation, Ethereum’s price may surge beyond $3,600, establishing a new high to signal the beginning of an upward trend. If this happens, potential future prices for ETH could reach $3,843 and $4,096.

Ethereum’s Long-term Outlook Remains Bullish

Regarding the crypto market, even though there may be a short-term adjustment, it’s clear that Bitcoin plays a crucial role in driving the bull run. Analysts predict that the peak for Bitcoin could occur towards the end of 2025. Given this perspective, downturns in Ethereum’s price might actually offer attractive opportunities. This is particularly relevant when considering Ethereum’s relatively weak performance in 2024. As a result, forecasts predict that Ethereum’s price could reach anywhere from $6,000 to $15,000 by 2025, as previously suggested in CoinGape articles.

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2025-01-07 15:12