Ethereum Price Prediction: ETH Bulls Eye $3300 as Price Rebounds

Highlights:

• Ethereum has pushed through $3191.2 resistance as bulls regain control
• Ethereum could test $3300 if ongoing momentum sustains
• Bullish sentiment across the market could help push Ethereum higher

Ethereum is on a rebound today, driven by the change of fortunes across the cryptocurrency market. After the selloff on Monday, January 27, the total cryptocurrency market is back in the green, up by 4.34%. Ethereum has reacted positively to this broader market rally.

When going to press, Ethereum was up by 4.04% to trade at $3196.22. It indicates that the selloff witnessed at the start of the week could be over. Multiple factors support the continuation of the price rebound witnessed today.

Ethereum ETFs Continue to Record Strong Inflows

The cryptocurrency market is witnessing a significant influx of institutional capital. Digital asset investment products attracted nearly 2 billion in inflows last week. According to CoinShares, total inflows for the market have hit $4.8 billion since the start of the year. Ethereum is among the top cryptocurrencies that have seen a significant inflow recently.

In the past week, Ethereum ETFs recorded inflows of $205 million. It’s an indicator that investors strongly believe in Ethereum and the broader cryptocurrency market. It also goes to show that the flash crash experienced yesterday, January 27, has little bearing on the overall direction of Ethereum.

Ethereum Price Surges as Favorable Regulations Boost Bullish Momentum

The surge in demand for crypto products, especially Ethereum, is partly fueled by a more favorable regulatory environment in the U.S. Recent actions by the Trump administration. This includes the establishment of a Presidential Working Group on Digital Asset Markets.

Trump bought again for $10,000,000 Ethereum in the last hour.

Something is brewing. Get me above $4,000 baby🔥 pic.twitter.com/a8sKP5yLIA

— Ted (@TedPillows) January 27, 2025

Such moves have signaled a more accommodating approach toward cryptocurrencies. This shift has boosted investor confidence, particularly in Bitcoin, which is being explored as a potential strategic reserve asset. Since Ethereum tends to follow Bitcoin’s price action, a positive move for Bitcoin would also bring good fortune to Ethereum.

Ethereum’s Potential Boosted by Staking and Deflationary Features

While Bitcoin dominates the spotlight, Ethereum is also gaining attention for its unique economic model. The Shapella upgrade has driven a notable increase in staking activity, with over 30% of ETH’s total supply now locked in staking contracts. 

This, combined with Ethereum’s EIP-1559 burn mechanism, has created deflationary pressure during periods of high network activity. Analysts suggest these factors could propel significant price growth, with some predicting ETH could reach $13,000 at the peak of the 2025 bull market.

AI Tokens Launching on Ethereum: A Bullish Signal

In another notable development, Venice, a privacy-focused AI platform, has introduced its VVV token on Ethereum’s Layer 2 Base network. The token aims to integrate blockchain technology with generative AI, offering decentralized and uncensored AI inference capabilities.

Founded by crypto industry veteran Erik Voorhees, Venice has grown to over 450,000 registered users since its launch. The success of such projects points to the growing adoption of Ethereum despite the intense competition it is facing from newer layer-1s. It goes to show that developers still believe Ethereum is the best network especially when reliability and censorship resistance are part of a project’s objectives.

Technical Analysis – Ethereum Price Pushes Through Resistance as Price Rebounds

From the charts, Ethereum has made a strong rebound intra-day. After bears were rejected at $3033.9, Ethereum has rallied back through the $3191.2 three-day resistance. If bulls sustain this momentum, then Ethereum could test $3343 in the short term.

However, if bulls fail and Ethereum falls back below $3191.2, then a correction to $3033.9 could follow. Of the two scenarios, a rally to $3300 seems more likely supported by the bullish sentiment in the broader cryptocurrency market.