Despite the recent volatility in the cryptocurrency market, Ethereum's price is still searching for direction. However, several factors indicate that by January 1, Ethereum's price is expected to see at least a 20% increase.
First, the spot Ethereum ETF is in high demand among investors.
Data shows that although Ethereum's price has fallen, the assets of the spot Ethereum ETF are still increasing. On Monday, the ETF's assets increased by $130 million, with total inflows exceeding $2.46 billion, and total assets reaching $12 billion. This indicates that investor confidence in Ethereum has not diminished.
Secondly, Ethereum funds are flowing out of exchanges.
Data from IntoTheBlock shows that the outflow of Ethereum from exchanges is increasing, indicating that investors are actively accumulating Ethereum. The total net flow from exchanges has dropped to a recent low, and this accumulation behavior may help Ethereum's price rebound.
Furthermore, the first quarter is usually the best-performing period for Ethereum.
Reviewing historical data, the first quarter is often the period when Ethereum experiences the largest gains in the year. In the first quarter of this year, Ethereum's price has already risen by 60%, while the average gain in the first quarters of the past eight years was as high as 92.75%. Therefore, from a seasonal perspective, Ethereum's price is expected to continue rising.
In addition, Ethereum's MVRV indicator shows that it is undervalued.
The MVRV indicator measures the relationship between an asset's market value and its actual value. Currently, Ethereum's MVRV indicator has dropped to 1.54%, well below the overvalued threshold of 3.8. This indicates that Ethereum's price is currently undervalued and has significant upside potential.
Finally, from a technical perspective, Ethereum's price is also expected to rise.
The weekly chart shows that Ethereum's price has retreated after encountering strong resistance around $4000. However, Ethereum remains above the 50-week moving average and the upward trend line, indicating that bulls are still dominant. Therefore, Ethereum's price is expected to retest the high of $4080 and even reach the predicted level of $5000.
Of course, if Ethereum's price falls below key support levels, such as $2812, the above bullish outlook may become invalid. However, overall, Ethereum's price still has significant upside potential in the near future.
#灰度提交Horizen信托文件
Recently, I plan to ambush a potential coin that is ready for a big rise; doubling is quite simple, and an expected space of over 10 times is not a problem. If you want to follow me for some insights, please pay attention to my profile. I share for free!
