A Look at Ethereum’s Price Potential in the Coming Weeks
Ethereum’s price rally seems to have hit a roadblock in the past 15 days, but traders on Polymarket and technical indicators are pointing towards more upside potential in the coming weeks. Over the weekend, Ethereum (ETH) was trading at $2,550, just slightly below its monthly high of $2,735. This represents an impressive 85% jump from its lowest point this year.
Polymarket traders are quite optimistic about ETH’s future, with most of them believing that the price will skyrocket to $4,000 by 2025. A recent poll shows that the likelihood of this happening has surged to 40%, up from a mere 16% last month. These odds are currently at their highest level since March 1st. If Ethereum were to reach $4,000, it would mean a substantial 60% surge from its current level. Additionally, Polymarket puts the chances of ETH hitting $5,000 at 25%, and $6,000 at 17%, while the probability of a crash to $1,000 has dropped to 16%.
Improving Fundamentals and Technical Analysis
There are clear signs that Ethereum’s fundamentals have been on the upswing in recent weeks. Data from Nansen reveals that the number of transactions on the network has grown by 35% in the last 30 days, reaching 39 million. The number of active addresses has also seen a slight uptick of 0.4%, totaling 6.7 million. Furthermore, spot Ethereum ETFs are attracting more inflows, with over $238 million added this week alone. The cumulative assets in these ETFs now stand at $2.76 billion, with BlackRock’s ETHA leading the pack at $3.4 billion, followed by Grayscale’s ETHE and ETH at $2.9 billion and $1.28 billion, respectively.
On the technical front, indicators are pointing towards further price gains for Ethereum in the coming months. A golden cross was recently formed as the 50-day and 200-day Arnaud Legoux Moving Averages crossed paths earlier this month. Additionally, a bullish flag pattern has emerged on the daily chart, with the flagpole starting earlier in the month and peaking at $2,736, which coincides with the 50% Fibonacci Retracement level. The current consolidation phase is seen as part of the flag formation, indicating a potential rebound in the near future. A move above the 50% retracement level at $2,736 could pave the way for more gains, possibly targeting the 61.8% retracement point at $3,052, with further upside potential towards $4,000.
In conclusion, while Ethereum’s price rally may have paused momentarily, there is optimism among traders and technical analysts that the cryptocurrency could see significant gains in the coming weeks. The improving fundamentals, along with positive sentiment on Polymarket and technical indicators, all point towards a potential uptrend for Ethereum in the near future.
