1. The spot Ethereum ETF is experiencing inflows
Background: The spot Ethereum ETF is attracting increasing interest from investors. Data shows that despite a decrease in Ethereum prices, the assets of the spot Ethereum ETF continue to grow. Reason: Inflows into ETFs typically indicate that institutional investors have increased confidence in Ethereum, and they may see the current price as a good buying opportunity. With more capital inflows, the price of Ethereum may be supported and rise.
2. ETH outflows from exchanges are increasing
Background: The outflow of ETH from exchanges is increasing, indicating that investors are accumulating this token. Reason: When the outflow of ETH from exchanges rises, it typically means that investors are transferring ETH to their own wallets, possibly for long-term holding or waiting to sell after a price increase. This accumulation behavior may support the rise in Ethereum's price.
3. The first quarter is the best quarter for Ethereum's performance
Background: Historical data shows that the first quarter is usually the best-performing period for Ethereum in the year. Reason: The first quarter may be influenced by factors such as market optimism, new project launches, and investors' expectations for performance in the new year, driving the price of Ethereum up. Additionally, Ethereum has shown strong growth momentum in the first quarter over the past few years, providing confidence to investors.
4. ETH price MVRV indicator is at 1.54%
Background: The MVRV (Market Value to Realized Value) indicator has dropped to 1.54%, indicating that Ethereum is still undervalued. Reason: The MVRV indicator measures the relationship between an asset's market value and its realized value. When this indicator is low, it means that the asset's market value is below its actual value, suggesting potential for price increase. For Ethereum, a decrease in the MVRV indicator may serve as a buy signal, driving the price up.
5. Technical analysis of Ethereum's price indicates a potential increase of 20%
Background: From a technical perspective, Ethereum's price has retreated after encountering strong resistance, but it remains above key support levels. Reason: Technical analysis typically focuses on price trends, trading volume, support, and resistance levels. For Ethereum, if the price can hold above key support and retest previous resistance levels, the likelihood of an increase will rise. Additionally, some technical indicators such as the Relative Strength Index (RSI) may also show oversold signals, suggesting a potential price rebound.
In summary, the five reasons above collectively support the expectation that Ethereum's price may rise by 20% on January 1. However, it is important to note that the cryptocurrency market is highly volatile, and price movements may be influenced by various factors. Therefore, investors should fully consider market conditions, risk tolerance, and investment goals when making investment decisions. For the next layout direction, I will guide everyone to target high-profit opportunities in altcoins, with an expected upside of over 10 times being entirely feasible. Like and comment, and I will help you plan the entire bull market!
