According to CryptoPotato, despite a recent dip in price, Ethereum is predicted to hit $5,000 by the end of 2024, backed by strong support at $3,500. Key indicators such as a low Relative Strength Index (RSI) and increased self-custody movements suggest a potential rally for Ethereum.
Ethereum, like many other leading cryptocurrencies, experienced a significant correction at the beginning of June, disrupting its bullish trajectory. Currently, it is trading at just over $3,500, representing a 7% decline on a two-week scale. However, some industry participants remain hopeful about its future, speculating that a new all-time high price could be achieved before the end of 2024.
One such individual is a user named Jelle, who asserted that Ethereum has successfully turned the $3,500 mark into support. Based on this, Jelle anticipates a rally towards the coveted level of $5,000 sometime this year. Another industry participant, Ali Martinez, also contributed to the discussion, stating that whales have bought over 700,000 Ethereum in the last three weeks, equivalent to a staggering $2.48 billion at current rates. This move reduces the available supply of Ethereum on exchanges and could lead to a price rally, assuming demand remains the same or increases.
Another analyst, known as Wolf, recently predicted a bright future for the second-largest cryptocurrency in terms of market capitalization. Wolf argued that Ethereum has been in a bullish mode since the beginning of the year, forecasting increased volatility in the coming months and an eventual bull run to as high as $5,000 at the end of Q3 2024.
Important on-chain metrics, such as the RSI and Ethereum's exchange netflow, also suggest that the asset's valuation could rise soon. The RSI, a tool that measures the change and speed of price movements, has not fallen below a ratio of 70 since May 23. Anything above this level indicates that Ethereum is overbought and could be headed for correction. Meanwhile, Ethereum exchange inflows have significantly exceeded outflows in the past month on most days. The shift from centralized entities towards self-custody methods is seen as bullish as it reduces the immediate selling pressure.