Ethereum Price Poised for a Rally to $4033 in the Short Term

Highlights:

• Ethereum price has dropped almost 1% despite a spike in trading volume.
• The ETH ETF started the year with a total net outflow of $77.51 million as of January 2.
• Bitwise predicts that the ETH price will reach $7000 in 2025. 

The Ethereum price has dwindled by almost 1%, trading at $3,448 at press time. Despite the drop, its daily trading volume has skyrocketed 5% to $19.26 billion, showing a spike in interest. ETH is now up 1% in the past week, 48% in a year, despite a slight fall of 7% in a month. 

Advertisement

Meanwhile, the ETH ETF has kicked off the year with a total net outflow of $77.51 million as of January 2. These fresh net outflows depleted Ethereum ETFs’ cumulative net inflows from $2.66 billion to $2.58 billion.

Ethereum spot ETF had a total net outflow of $77.51 million on January 2, and Grayscale ETF ETHE had a single-day net outflow of $21.4027 million. The current total net asset value of Ethereum spot ETF is $12.438 billion. https://t.co/Tvs2oCSxTg pic.twitter.com/UsyaF9iaxb

— Wu Blockchain (@WuBlockchain) January 3, 2025

ETH Statistical Data

Based on CoinmarketCap data:

• ETH price now – $3,448
• Trading volume (24h) – $19.26 billion
• Market cap – $415.24 billion
• Total supply – 120.45 million
• Circulating supply – 120.45 million
• ETH ranking – #2

The Ethereum price has moved into a consolidation phase, with strong support established at $3,301. Recently, the altcoin has hit resistance and needs to break and push through. However, there is a tug-of-war between the bulls and the bears, though the odds tend to lean to the upside. This consolidation phase may act as an accumulation period before the bulls break out and reach the $4,000 mark. 

Bitwise Predicts ETH to Hit $7000 in 2025

The long-term support coinciding with the 200-day MA at $2,983 tilts the odds towards the bulls. However, the immediate upside resistance at the 50-day MA is $3,531.74, cushioning the bulls against upward movement. A breach and break above this area would open the possibility of Ethereum’s price reaching $3,738 in the short term. In a highly bullish scenario, the bulls could grow hind wings, propelling the price to the $4,033 psychological milestone.

A well-known Crypto Patel analyst says via X that Bitwise predicts the Ethereum Price could soar to $7000 in 2025. This is not the first time that Bitwise has predicted potential new Highs in most altcoins in 2025. However, it remains to be seen whether these predictions will come to pass as the bull run is set to commence this year (2025.)

Bitwise predicts $ETH to hit $7,000 & $SOL to reach $750 in 2025 🚀

IMO: $ETH could touch $8k-$10k, but $SOL might max out at $500.

What’s your take on $ETH & $SOL targets for 2025?

Drop your predictions below! ⬇️ pic.twitter.com/jziUm6LtL3

— Crypto Patel (@CryptoPatel) January 3, 2025

Looking at the RSI, it has also been moving horizontally, consolidating in the daily chart timeframe. Its position at 48.28 shows an equilibrium state in the ETH market, meaning the altcoin is neither oversold nor overbought. However, if it breaks above the 50-mean level, the buying interest will surge, causing the price to rally. 

The MACD indicator is about to cross above the orange signal line. If the crossover occurs, traders will likely buy more ETH in the market. Increased buying appetite will see the Ethereum price soar in the short term. Until then, traders can leave their positions open unless the MACD crosses above the orange signal line.

Ethereum Price Poised for a Rally Above the $4,000 Mark

Based on the technical outlook in the daily chart above, the bulls might take the reins soon. The breakout above $3,531 and improving technical indicators signal a potential rally in the Ethereum price. If the bullish momentum can be sustained, Ethereum could challenge the $3,750 level and extend gains toward $4,033 in the short term. 

If Ethereum fails to break above $3,531, it may retreat to retest the $3,301 mark. Increased selling pressure may cause the altcoin to fall to $3,033. 

Advertisement