Ethereum (ETH) is poised for a pivotal yearly close as 2024 draws to a close, with Google’s (NASDAQ:GOOG) Gemini AI model forecasting a rally to $4,500 by December. It is currently trading around $3,345, continuing to swing within a tight trading range between resistance at $3,450 and support at $3,200.
These positive expectations are consistent with its strong technical fundamentals, including Ethereum blockchain updates and increased institutional interest.
Key drivers of Ethereum price rise expectations
1. Blockchain Updates and Adoption
Recent Ethereum updates, including the Shanghai and Shapella updates, have had a positive impact on increasing the scalability of the Ethereum blockchain and improving the efficiency of completing transactions, and have led to increased adoption of decentralized applications (dApps) and smart contracts, thus increasing demand for ETH.
Also, the increased activity on Ethereum’s layer-2 solutions has made this blockchain the cornerstone of decentralized finance (DeFi) systems.
2. Institutional investment and general market sentiment
Institutional interest continues to be a major driver of Ethereum’s growth, with ETH emerging as a key option for diversifying portfolio assets, especially as major companies begin to diversify their investments to include digital assets. This confidence is reflected in Gemini’s bullish outlook, supported by high trading volumes and a positive general sentiment.
Technical indicators of promise:
The Relative Strength Index (RSI) is in the middle zone at 59, giving room for bullish momentum.
A promising intersection of the MACD lines, indicating that the bullish wave is gaining significant strength.
Possibility of a golden cross; if the 50-day simple moving average (DMA-50) crosses above the 200-day DMA (DMA-200).
However, Ethereum price faces a crucial test at $3,450, and if it succeeds in breaking it, it may continue its upward path to test the resistance level at $3,750 with subsequent resistance levels at $4,000 and $4,500.