Key Points
- Ethereum (ETH) is poised for a significant price rally, potentially reaching $7,000.
- This comes amid a decrease in demand from large-scale investors, also known as “whales”.
Ethereum (ETH) ended the fourth quarter of 2024 on a positive note, and it’s now ready to trigger the anticipated parabolic phase of the altseason.
Ethereum, with a fully diluted valuation of approximately $416 billion and a 24-hour average trading volume of around $20 billion, is trying to break free from a macro-falling logarithmic trend.
Price Movements and Predictions
On a weekly basis, Ethereum’s price against the US dollar has bounced back from the 50 Moving Average (MA). However, in the daily time frame, Ethereum must reclaim the 50 MA as a support level, and the Relative Strength Index (RSI) must rise above 50% to negate the recent market correction.
If Ethereum’s price loses the support level above $3,300 in the near future, another sell-off could hit the altcoin industry before the start of a parabolic cycle. If a market correction occurs, Ethereum’s price should find solid support above $3,000.
Ethereum’s price is gearing up for a significant bullish surge over the long term, having formed a cup and handle pattern in the weekly time frame. Additionally, the ETH/BTC pair has been forming a reversal pattern after being stuck in a falling logarithmic trend for the past three years.
Ethereum Whales and Supply
While the overall supply of Bitcoin (BTC) on centralized exchanges continues to fall to a multi-year low, Ethereum’s supply on these exchanges has been increasing since the start of 2025. Data from CoinGlass reveals that Ethereum’s supply on centralized exchanges rose by over 415K in the past 24 hours, reaching about 15.79 million.
The initial demand for Ether from US spot ETF ETFs during the last few weeks of the fourth quarter has significantly decreased. On Thursday, the US spot ETH ETFs saw a net cash outflow of approximately $77 million, led by Bitwise’s ETHW and Grayscale’s ETHE. However, the rest of the US spot Ether ETFs did not suffer losses on Thursday, resulting in a cumulative total net inflow of about $2.5 billion and total net assets of around $12.4 billion.
Network Fundamentals
The Ethereum network remains the undisputed leader in the web3 space, with over $67 billion in total value locked (TVL) and around $112 billion in stablecoins market cap. Despite the emergence of other competitive layer one (L1) blockchains, such as Solana (SOL), Ethereum continues to attract more institutional investors.
The upcoming Ethereum Pectra upgrade will allow External Owned Accounts (EOAs) to function like smart contracts, thereby improving the scalability of smart contracts. With the increasing popularity of Ether staking among institutional investors, Ether’s price is well positioned for exponential growth in the coming months.
