Key Insights:
Ethereum is at a throw's distance from crossing $4,000.
Experts predict a near-term target of $6000 while indicating targets of up to $16,000 for 2025.
On-chain data shows a growing trend in self-custody in ETH.
ETH's price could also see a boost from Altcoin Season which is now at 85.
Ethereum's price could finally breach $4,000 anytime, as it has repeatedly attempted to do so. The last attempt by ETH was on 05 Dec 2024, when it touched $3,956 in the afternoon (UTC).
ETH's Price Trend in the Last 7 Days
CoinMarketCap
This comes almost six months after May 2024, when ETH breached $4,000 from the upside and crashed to $2100 afterward. The gross undervaluation of ETH was caused by several factors, such as the turbulence caused by multiple Surge and Verge series of upgrades, the selling of ETH by the Ethereum Foundation, and the selling caused by Grayscale and other whales.
However, despite all things, Ethereum plays a central role in DeFi, among Dapps, through its EVM, and in the entire Layer-2 ecosystem. Combine this with the future prospects of RWA and the mainstream acceptance of DeFi technology. All of these indicate that Ethereum is nowhere to go, even in the far future, and will continue to be a backbone of the crypto ecosystem.
Experts indicate an upcoming super rally in Ethereum, during which its price could breach $15k within the first half of 2025. Multiple predictions are also made for the near, medium, and long term.
Ali Martinez predicts an ETH price of $6000 in the next few weeks.
Bankless co-founder Ryan Sean Adams estimates ETH's fair value around $10,000. His estimates are based on ETH's multifaceted value as a capital asset, transfer of value, and consumable product, otherwise known as a Triple-Point Asset.
Another estimate by an investor is a value of $15,937 by May 2025. Though it seems like an overestimation, the recent rallies in XRP, DOGE, BTC, and SOL indicate that this might be a reality in 2025.
In the last 15 days, Ethereum has had a solid streak of inflows that have enriched the total amount of ETH held by ETFs to $12 billion. This might seem like barely one-tenth of Bitcoin, but it has lent great support to ETH's price.
Ethereum ETF Inflows as on 05 Dec 2024
Coinglass
ETFs were one of the major disruptors in Ethereum, and since they have been seeing net inflows, we could see a better price for ETH in the near future.
The arrival of the crypto alt season has further intensified Ethereum's gains. Major altcoins have seen fast price growth in the last week or two. The index now shows a value of 85 at press time, which indicates that the current swing in Altcoins could continue in the near term.
Altcoin Index
CoinMarketCap
However, since Bitcoin has seen much broader adoption than any other cryptocurrency, this might slow down AltSeason, and the drawdown in Bitcoin's dominance could hurt Ethereum in the near term. However, once ETH sheds its undervaluation, it might see a meteoric rise to new highs.
Ethereum has been a whale-dominant cryptocurrency, with 53% of the current supply in the hands of whales (investors with greater than $100k balance). This has caused a major ETH price issue, as whales have been dumping it lately to buy Bitcoin. Also, has caused a major skew in the ETH/BTC charts, which have recently fallen to multi-year lows. However, lately, there has been a trend reversal.
ETH/BTC Charts on Google
Another on-chain insight that promises a fair possibility of ETH making new ATHs soon is that a large amount of ETH has been taken lately off the exchanges. This means that those HODLing ETH are doing it so for the long run.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it 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.