5 Reasons Why Ethereum Price Is Expected to Rise 20% on January 1st

Brothers, pay attention to Yibo, start broadcasting immediately, and analyze the market online

Due to the continued profit-taking and weak sentiment in the cryptocurrency industry, the price of Ethereum is still seeking a clear direction. However, factors such as inflows of funds from spot Ethereum ETFs, net outflows from exchanges, and MVRV technical indicators suggest that ETH may rebound by January 1st.

Several factors can explain why Ethereum may rebound by at least 20% before the end of the year. First, spot Ethereum ETFs are attracting more and more investors. Data shows that despite the correction in Ethereum prices, the assets of spot ETH ETFs continue to increase. The inflow of funds on Monday was $130 million, which partially offset the outflow of funds in the previous two days, bringing the total inflow to $2.46 billion and the total assets to over $12 billion.

Second, the outflow of Ethereum from exchanges is rising. IntoTheBlock data shows that the net outflow of exchanges fell to 49,600 ETH, the lowest level since December 19. This suggests that investors are actively accumulating ETH, which may provide support for price recovery.

Third, the first quarter is usually the strongest period for Ethereum. In 2023, ETH rose 60% in the first quarter, while the average increase in the first quarter of the past eight years was 92.75%. Therefore, investors expect that ETH is likely to rise sharply again in the first quarter of 2024.

In addition, the MVRV indicator is currently 1.54%, which is far from the higher valuation of 3.8%, indicating that ETH is still undervalued. The decline in the MVRV indicator further suggests that ETH has room to rise.

Finally, the technical side shows that ETH may rise by 20%. The weekly chart shows that ETH fell back when it approached the strong resistance level of $4,000. The current price still has about 20% room to go from this level. ETH remains above the 50-week moving average and the rising trend line since June 2022, which shows that bulls are still in control of the market. If ETH breaks through $4,080, the price is expected to climb further to $5,000. If the $2,812 support level is broken, the bullish scenario will be invalidated and ETH may pull back to $2,500.

Brothers, pay attention to it, the broadcast will start immediately, and analyze the market online