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bitcoin
Bitcoin (BITCOIN)
$115,126 1.39%
ethereum
Ethereum (ETHEREUM)
$4,169 2.29%
binancecoin
BNB (BINANCECOIN)
$1,142 0.71%
solana
Solana (SOLANA)
$200.12 0.30%
ripple
XRP (RIPPLE)
$2.66 0.66%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000010 0.08%
pepe
Pepe (PEPE)
$0.000007 -1.35%
bonk
Bonk (BONK)
$0.000015 -1.04%
bitcoin
Bitcoin (BITCOIN)
$115,126 1.39%
ethereum
Ethereum (ETHEREUM)
$4,169 2.29%
binancecoin
BNB (BINANCECOIN)
$1,142 0.71%
solana
Solana (SOLANA)
$200.12 0.30%
ripple
XRP (RIPPLE)
$2.66 0.66%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000010 0.08%
pepe
Pepe (PEPE)
$0.000007 -1.35%
bonk
Bonk (BONK)
$0.000015 -1.04%
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Ethereum Price Prediction: Why ETH Could Reach $4500 Soon

Highlights:

  • Ethereum is making higher lows in a bullish channel
  • Price action is an indicator that every dip is being bought up
  • A continuation of upside momentum could see Ethereum hit $4500 soon

Ethereum (ETH) is in the green today, mirroring the trend across the financial markets. In the last 24 hours, Ethereum has gained by 6.03% to trade at $4194.64. At the same time, Ethereum trading volumes are surging. When going to press, Ethereum trading volumes had shot up by 181.52% to stand at $39.19 billion. This points to strong money flow into Ethereum, and bullish expectations amongst investors. There are multiple factors supporting this price action for Ethereum intraday. 

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Money Flow Back to Risk-On Assets Boosting Ethereum

One of the factors supporting Ethereum’s price action is the fact that momentum is flowing back into risk-on assets. This is evident in the fact that since the tail-end of last week, and continuing now, stocks and cryptocurrencies have been gaining momentum. At the same time, gold prices have been in a correction, an indicator that the heightened fears that have characterized the markets in recent months are easing. 

This shift is driven by expectations that the US and China could make headway in trade after a Trump-Xi meeting confirmation. There is also a growing consensus that the Federal Reserve could soon cut interest rates. This confluence of positive macros could trigger a rally that pushes Ethereum to new highs in the short term. 

ETH Could Reach $4500 Amid Growing Ethereum Accumulation

Ethereum is also gaining strongly from the fact that whales are accumulating. Whales recently purchased 218,000 Ethereum worth $800 million. Such moves usually precede strong price rallies. That’s because whale activity also tends to spur retail FOMO, helping push prices higher.

Besides the excitement from whale action, their moves directly affect demand and supply dynamics. In the case of Ethereum, where supply has been declining due to staking, such big purchases could send the price to new highs in the foreseeable future.

The surge in whale buying is also happening around significant support, which adds to the potential for substantial upside momentum. This may explain why multiple analysts believe that Ethereum could soon make new highs. In the very short term, analysts expect Ethereum to hit $5000.

Ethereum L2s Security Boosts Whole Network Confidence

Ethereum has also got a boost from reports about Ethereum Layer-2s having the same security as the Ethereum network. According to Ethereum co-creator Vitalik Buterin, Ethereum L2s have the same protection as the L1 network when it comes to 51% attacks. 

This is a confidence boost for investors, one that could see more developers opt for the Ethereum ecosystem. By extension, this is likely to keep pushing up the demand for Ethereum going into the future. This adoption is likely already happening and explains why even in the recent marketwide correction, Ethereum has held at key support levels. It shows that the market has confidence and that investors are capitalizing on every dip to load up. 

Technical Analysis – Ethereum Making Higher Lows In A Bullish Channel

Ethereum has been trending higher in the last 24 hours. In this period, it has been making higher lows along a bullish channel.

ETH
Source: TradingView

This is a strong indicator that every correction is seen as an opportunity to buy more. If bulls sustain momentum, the key level to watch will be the $4237.7 resistance. Breaking this resistance could drive a short-term rally, potentially allowing ETH to reach $4500. More long-term, a breakout to $5000 could follow, especially if the Fed cuts rates.

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