Key Insights:
Ethereum is expected to retest $5000 levels soon in either January or Q1 of 2025.
Strong buying in Ethereum yesterday brought it back to the safe zone of $3200 after it dipped below $3000.
However, a resistance zone between $3,360 and $3,450 could lead to a subdued price this week.
Fair valuation analysis points to a target between $10 and $15k by the end of the year, which is based on a historical ETH/BTC ratio of 0.15.
A move beyond $5000 opens the gateway to $10k levels.
On 13 January, Ethereum saw its price dip below $3000 and touch a low of $2920. This move opened the risk of a crash to $2100 levels. However, the price of Ethereum saw a quick recovery due to strong greed for buying at an undervalued price. Markets participated in a high-volume buying spree in Ethereum, causing the trading volume to spike to $37 billion.
The strong buying not only resulted in Ethereum recovering back to $3200 levels but also created a strong support zone. As a result, Ethereum is unlikely to fall below $3000 levels anytime soon.
In the upcoming few weeks, the strong accumulation that took place at $3000 could lift Ethereum beyond the $4000 levels it has been trying to cross since November 2024. Despite multiple attempts, Ethereum has been unable to sustain above those levels amid a bull market.
Ethereum's bearishness surprises us because it has a complete ecosystem: It supports almost 56 layer-2 blockchains, thousands of DeFi protocols, over $60 billion in TVL, and an equal amount of stablecoins.
The demand that led to strong buying below $3000 originates from whales and retail markets. Ethereum whales were seen buying around 168k ETH earlier this month. For the last two weeks, whales have continued to buy top layer-1 blockchain tokens like ETH, DOGE, and XRP.
In the retail markets, Ethereum ETFs turned net positive buyers yesterday with a net inflow of $1.2 million. Though this number is very small and unlikely to cause much lift in ETH's price, it still marks a change in trend from selling ETH to buying.
Finally, irrespective of market sentiment, ETH is unlikely to fall below $3000. This situation makes ETH a no-risk play at this stage and opens the door to a golden accumulation opportunity.
We have two unique charts that predict Ethereum to first cross $6000 levels and then $15k levels.
The first chart presented by top chart analysts shows that if Ethereum crosses $4000, this move would easily open doors for it to cross $6000. At this stage, having gained 100% from the $3000 level, ETH is expected to continue its journey based on strong retail participation.
The next chart presents historical trends in ETH/BTC, which indicate that ETH could reach a price zone of $15k by summer 2025. This is because the ETH/BTC ratio has been historically at 0.15, as opposed to the current scenario of 0.005.
According to Ali Martinez's recent tweet, ETH could rally if it breaks out above the $3,450 level. The zone between $3,360 and $3,450 presents strong resistance.
Another factor complicating the situation is the expectation of lower liquidity in the crypto markets based on the US Fed's latest meeting.
However, on the positive front, the expectation of better crypto regulations could also pump the markets above their last ATH of $3.79 trillion. This rally could help ETH break out of its barrier.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.