3 Signs That Forecast Ethereum Price is Ready to Hit $5,000
After Bitcoin’s December 10 crash altcoins took a massive hit. However, Ethereum showed strength and has already began its recovery. This move contrasts ETH’s majority of 2024 performance. But three signs have emerged that suggest Ethereum price’s recent rally to $4,000 is just the beginning and that it could trigger its next leg and tag $5,000.
Key Signals That Hint Ethereum Price Could Explode
A closer look at Ethereum’s network shows that it is seeing strong user activity as the altcoin season continues. Data shows that the network growth and the number of active addresses have continued to rise in the past few months. Despite the recent Bitcoin crash, Ethereum’s price and its investors remain unfazed. This is the first sign that ETH is bound to go higher. Furthermore, a spike in Network Growth suggests new addresses are joining the network, which in turn means that fresh capital is flowing to the network. Hence, an uptrend is highly likely.
Ethereum Transactions Are Rising
Further, on-chain metrics show that whales have continued buying Ethereum in the past few weeks. Data shows that wallets holding between 1k and 10k ETH coins have increased from 13.2 million to 14.23 million.
Similarly, those holding between 10k and 100k have increased their holdings from 24.87 million to 24.97 million. Purchases by whales is a sign that they are confident that the coin has more upside to go. Remember that some of these whales have held the coin for over a decade and have seen it rise from less than $5o to almost $4,000 today.
Ethereum Whale Holdings
Third, after a lackluster reception by Wall Street, there are signs that investors have started to buy spot Ethereum ETFs. Data shows that these funds have had inflows in the last three consecutive weeks, bringing the total net assets to $12.46 billion.
The cumulative inflows stand at over $1.8 billion, a figure that may continue growing. One potential catalyst is that the SEC may approve staking of these ETFs, which will attract more capital.
Ethereum ETF Inflows
Technical Analysis: Ethereum Price Eyes $5,000
Technicals suggest that Ethereum price has more upside to go in the near term. The weekly chart shows that the coin has faced some resistance at $4,073. It has failed to move above that price three times since March this year. A clean break above that level will raise the possibility of the ETH price rising to its all-time high of $4,858.
Looking back, there are signs that Ethereum price is forming a long-term cup and handle pattern whose upper side is at $4,858. The depth of this cup is about 82%, meaning that the coin may ultimately rally to $8.845 in the longer term.
The other bullish case is that ETH price has recently completed the fourth phase of the Elliot Wave pattern. The fifth wave is often bullish for an asset.
Ethereum Price Chart
On the flip side, a drop below the support at $2,132 will invalidate the bullish view. This was an important price since it was its lowest level in August. A drop below that level risks it dropping to $1000.
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