Ethereum’s native token, Ether (ETH), has continued its steady rise, reaching a crucial psychological level above $4,000. Over the past three weeks, ETH has surged 28%, marking an impressive recovery since November 18. Despite a brief dip to $3,615 on December 5, the altcoin has shown resilience, bouncing back and trading firmly above the $4,000 mark. Ethereum’s performance has drawn attention, with many crypto analysts predicting a major paradigm shift if it can maintain this momentum.
Ethereum’s Path to New Highs
Ether’s yearly high remains at $4,098, and its price trend continues to form higher highs and higher lows on the 4-hour chart, signaling bullish behavior. Additionally, the Relative Strength Index (RSI) is holding steady below the overbought territory, indicating that the token still has room to grow without entering a correction phase.
An anonymous venture founder and crypto analyst has set bold predictions for Ethereum’s future, suggesting that the altcoin could reach as high as $16,000 by 2025. Such a price point would push Ethereum’s market cap beyond the $1 trillion mark, a milestone that has never been achieved by the altcoin. The analyst points to Ethereum’s consolidation within a three-year ascending triangle pattern as evidence that Ethereum is on the verge of a “paradigm shift.”
However, the analyst warns that Ether must first establish a strong support level at $3,800 by closing its weekly candle above this figure. This would significantly increase the chances of Ethereum testing its all-time high of $4,878. Given the current trajectory, Ethereum appears poised to retest this high and possibly break through it in the near future.
Golden Cross Signals a Bullish Outlook
Adding to the optimistic outlook for Ethereum, independent crypto trader Honey highlighted the emergence of a “golden cross” on Ethereum’s 1-day chart. In previous bull markets, the golden cross — a technical indicator where the short-term moving average crosses above the long-term moving average — has been a reliable signal of an impending price surge. Honey predicts that Ethereum is entering the early stages of a “giga pump,” which could propel the token to new all-time highs.
ETH about to have a golden cross on 1D
— Honey (@honey_xbt) November 25, 2024
last time we had this was back in november'23 below $2k and it pumped 2x in the following months
make of this what you will pic.twitter.com/OZ0SUHwob5
Institutional Interest Drives Spot Ether ETFs
Ethereum’s strong price action has coincided with growing institutional interest in Ethereum-based financial products, particularly spot Ethereum ETFs. After being overshadowed by Bitcoin ETFs in 2024, Ethereum ETFs are now beginning to see significant traction. Cointelegraph reported that Ethereum’s spot ETFs witnessed their largest daily inflows since launch, totaling $428.5 million.
Since November 18, spot Ethereum ETFs have received over $1.3 billion in inflows, with BlackRock’s iShares Ethereum Trust leading the charge. The fund alone has seen over $500 million in inflows this week, bringing its total to $2.6 billion. This institutional support is a strong indicator that Ethereum’s appeal is growing, and investors are increasingly confident in its future prospects.
DeFi and Total Value Locked Soars
Ethereum’s decentralized finance (DeFi) ecosystem is also showing signs of growth. Data from DefiLlama revealed that the total value locked (TVL) on Ethereum’s blockchain reached a new yearly high of $77 billion on December 5. This marks a key achievement for Ethereum, signaling that its network remains a dominant force in the DeFi space.
As Ethereum continues its upward trajectory, surpassing $4,000, the crypto community is watching closely. With positive technical indicators, growing institutional interest in spot Ethereum ETFs, and a thriving DeFi ecosystem, Ethereum is well-positioned for a potential breakout. The next few weeks will be critical in determining whether ETH can maintain its momentum and push towards new all-time highs. As Ethereum heads toward a possible paradigm shift, investors are eagerly awaiting to see if it can sustain its bullish rally and unlock even greater potential in the years ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Justin Sun Deposits $76.3M in ETH as Ethereum Breaks $3,800: Strategic Moves Behind $145.9M Holdings
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