Ethereum Price Forecast: ETH Headed for a Breakout to $4800
Highlights:
- Ethereum is currently trading along the 7-day MA while pushing higher
- Rally through $4000 could open the way for a test of $4800
- Bitcoin making new highs could trigger a flow of money into altcoins like Ethereum
Ethereum, like most altcoins, is yet to follow Bitcoin as it makes new all-time highs in the day. However, like most altcoins, Ethereum is showing signs of a potential breakout in the short term. From a glance at its price action, Ethereum is currently trading at $3927.03, up by 1.38% in the day.
Ethereum trading volumes are also on the rise, an indicator that investors are increasingly taking an interest in Ethereum. Quite expected given that Bitcoin has pushed through its all-time highs, and this usually errands a potential bull run for the entire market. A look at Ethereum’s price chart points to the possibility of such a rally in the short term.
Technical Analysis – Ethereum Price Trending Above 7-Day MA
From its intra-day price action, Ethereum is showing signs of a possible continuation of the momentum it has built up so far. Ethereum is currently trending upwards above the 7-day moving average. Ethereum also has strong support at $3905 on the 25-day MA and at $3815 on the 99-day MA.
If the current momentum continues, the key level to watch would be the December 6 high of $4087.73, which is now a key short-term resistance level. A rally through this resistance could see Ethereum rally to its all-time high of $4800 in the short term. On the other hand, if bears take control intra-day, the key level to watch would be 99-day MA at $3815. If Ethereum bears push the price through the $3815 support, then a correction to the multi-week support at $3565.09.
Bitcoin Momentum Bullish for Ethereum
However, of these two scenarios, the odds are high that Bitcoin could be headed higher in the short term. One of the key factors that support such a price rally is the fact that bullish momentum is on the rise around Bitcoin. With all the FOMO around Bitcoin at the moment, the odds are high that it could be headed to $200k. As has happened in past bull cycles, such movements for Bitcoin are usually followed by an altcoin rally.
Ethereum is particularly well suited for such a rally because, unlike most altcoins, it is yet to retest its 2021 all-time highs. This means investors chasing market discounts in the bull run could FOMO into Ethereum. Ethereum’s intra-day setup where it is trending higher with multiple moving averages acting as support could be a precursor to a major price move in the short term.
Institutional Demand for Ethereum Gaining Traction
Indicators for a parabolic price move for Ethereum are already there with institutional demand gaining traction. This is evident in the continued increase in inflows into Ethereum ETFs. According to a BlackRock executive, the adoption of Bitcoin and Ethereum is just getting started, as most of their investors are yet to jump on the crypto ETFs train. This is a pointer that institutional investors have full confidence in Ethereum and expect it to head higher going into the future.
Larry Fink will announce he’s more bullish on $ETH than $BTC in 2025
This year of nonstop, relentless Ethereum FUD has been an incredible opportunity to continue accumulating $ETH is well on its way to becoming a prized institutional darling. Especially as staking goes live in… pic.twitter.com/AS1RYHXjB7
— EthereanVibin | 0xVibin.eth 🦇🔊 (@EthereanVibin) December 15, 2024
Ethereum Liquid Staking on the Rise
The vote of confidence in Ethereum is also supported by the parabolic growth in Ethereum liquid staking in 2024. Data shows that in 2024, Ethereum liquid staking shot up from $284 million to $17 billion. This points to the growing utilization of Ethereum in DeFi. As this utility value of Ethereum, so does its potential to go up in price as the broader market gains traction.
Ethereum liquid staking is on fire! From a mere $284M to a staggering $17B in 2024, it’s clear that savvy investors are catching the wave. This trend reflects growing confidence in Eth 2.0. The future looks bright for stakers! #Ethereum #LiquidStaking #CryptoGrowth #DeFi…
— ❄️ ThaFrost.x 🥶 (@thafrostx) December 16, 2024
Recap
Ethereum has yet to make any major price moves, but there are indicators that these moves are coming. With rising ETF inflows and a parabolic rise in Ethereum liquid staking, a retest of $4800 all-time high could be in the cards.
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Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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