Ethereum Price Prediction: Why Ether Could Hit $4K Soon

Highlights:

• Ethereum is currently trending towards the $3545.5 resistance
• A rally through this resistance could pave the way for Ether to hit $4K
• Rising bullish sentiment around Ethereum could help sustain bullish sentiment

Ethereum is showing some bullish momentum today, mirroring Bitcoin’s price action intra-day. In the last 24 hours, Ethereum has gained by 4.35% to trade at $3457.47. Ethereum is also one of the top altcoins that have experienced the least correction in the last few days when the broader cryptocurrency market has been in the red. Today’s price action puts Ethereum’s market cap at $415.34 billion.

However, like most altcoins, Ethereum trading volumes intra-day are down by 24.41% to stand at $39.34 billion. This is an indicator that investors are on the sidelines, waiting for a confirmed price move for Bitcoin before money can confidently flow into Ethereum and other altcoins. That said, multiple factors could support a strong flow of money into Ethereum in the short term.

Ethereum Is Getting More Decentralized

One of them is the fact that Ethereum is continually making moves to improve the network. While Ethereum has lots of competitors, very few of them can rival Ethereum in terms of reliability. Ethereum may not be the fastest, but it guarantees users of continuous uptime.

Ethereum is making moves to enhance this by working on enhancing decentralization. One of the players making a move in this direction is Flashbots through what it calls BuilderNet. This is a decentralized network that aims to tackle centralization on the Ethereum blockchain. It aims to achieve this goal by allowing multiple players to work together in generating blocks. Ethereum currently uses a Proposer-Builder Separation (PBS) model.

This entails block builders competing to come up with blocks for review. This has led to centralization issues on the network and sandwich attacks. Under the proposed model, Ethereum will become more permissionless, which would make it even more censorship-resistant. With a more permissionless network, Ethereum becomes even more decentralized.

Introducing BuilderNet.

BuilderNet is a decentralized block building network for Ethereum that runs on TEEs and shares MEV & gas fees with users.

An early version of BuilderNet is live today — operated by Flashbots, Beaverbuild, and Nethermind. pic.twitter.com/7gyx26hbqA

— Shea Ketsdever (@SheaKetsdever) November 26, 2024

This gives it more intrinsic value than most L1s in the market today, which can be shut down at any time. As more investors become aware of the inherent value that Ethereum holds, the same could translate into value growth over time.

Social Sentiment for Ethereum Turning Positive

Ethereum sentiment is turning bullish. A few weeks ago, most voters on the CoinMarketCap believed that Ethereum was going down. The same was reflected on social media platforms like X where most analysts expected to continue going lower, and potentially drop to around $1000. 

#Ethereum not dead. pic.twitter.com/5zniRJilrf

— Dan Tapiero (@DTAPCAP) November 27, 2024

However, this is changing. Currently, the CoinMarketCap sentiment tracker puts Ethereum bulls at 57%. Such metrics are a bullish signal as they could see more money start flowing into the Ethereum network. As the price continues to rise, FOMO buying could see the price of Ether hit $4k in the short term.

ETH/BTC Pair Turning Bullish

Ethereum is also boosted by the increased perception that the Eth/BTC pair may have bottomed out. This pair has been going down since 2022 but is currently showing signs of bullish momentum. If more investors perceive Ethereum as having bottomed out relative to Bitcoin, then money could flow into Ether in record numbers. This could see Ethereum build up momentum as it heads towards $4k.

Technical Analysis – Ethereum Trending Towards Key Resistance

From the charts, Ethereum is gaining upside momentum after establishing strong support at $3277.2.

If the current momentum continues, the key level to watch would be the November 25 high of $3545.5. With bulls regaining control across the cryptocurrency market, Ether could hit $4k in the short term.