Forecasts Point to a Potential Surge in Ethereum Price Amid Favorable Analysis
Experts foresee Ethereum reaching $6,000 by the first quarter of 2025 as the number of long-term Ethereum holders increases significantly.
Overview
A recent analysis, posted on December 29 by CryptoBullet, a prominent crypto analyst, identifies a bullish trend in Ethereum marked by the emergence of a bull pennant pattern on the daily ETH/USDT chart. The historical implication of this pattern suggests a potential upward price trend.
Professional Insights
With a social media following exceeding 152,000, CryptoBullet predicts Ethereum to hit $6,000 early next year upon the completion of the bullish formation. Drawing comparisons to May 2021, when Ethereum surpassed $4,000 after a similar breakout, analyst James CryptoGuru foresees a climb to $8,100 if a bullish inverse head and shoulders pattern materializes as anticipated in 2024.
Analyst Jelle also supports a positive outlook for Ethereum, citing a significant shift in Bitcoin dominance, historically correlating with Ethereum’s price surging fourfold over five months in previous instances.
Market Trends
The proportion of long-term Ethereum holders—those keeping assets for over a year—has risen notably from 59% in January to an impressive 75% by the end of 2024. In contrast, Bitcoin long-term holders declined from 70% to 62%. This shift, reported by IntoTheBlock, indicates a strong foundation for sustained price growth.
Historically, Ethereum tends to perform well in first quarters with notable events like U.S. elections and Bitcoin halving cycles. Exceptional gains were seen in the first quarters of 2017 and 2021, with increases of 518% and 161%, respectively.
Effect Analysis
The emergence of spot Ether exchange-traded funds (ETFs) presents another catalyst for a potential price surge. SoSoValue data shows consistent inflows into these ETFs over 22 of the last 24 trading days, accumulating over $2.5 billion. Enthusiasts predict up to $50 billion in net inflows by 2025.
Conversely, reduced buying from large holders, called whales, poses a challenge as whale net inflows dropped significantly from approximately 220.88k ETH on December 23 to 14.45k ETH five days later. This decline may cause concern among retail investors who often follow these institutional players.
Final Thoughts
The path ahead for Ethereum toward 2025 shows promise, with optimistic projections from analysts and a growing base of long-term holders setting the stage for potential price growth. However, the impact of decreased activity by major cryptocurrency holders could influence market sentiment. Currently, Ether (ETH) shows a modest 1% increase, trading at $3,413 per coin. Watchful eyes in the market will monitor these developments for signals of future price movements.
