Ethereum Price Prediction: Bullish Signals Suggest $4500+ Soon

Highlights:

• Ethereum has formed a bullish engulfing after a 2-day correction
• Bounceback supported by expectations of a rate cut in the US
• Rate cut could pave the way for a rally back to all-time highs

Ethereum has been in a correction since hitting a high of $4107.8 on December 16. At the time of going to press, Ethereum was trading at $3865.91, down by 3.54% in the day. Trading volumes are also declining in the day, down by 13.53% to $37.35 billion.

Ethereum’s price action in the day has a lot to do with the low level of activity across the market in the last 24 hours. For context, Bitcoin, the key market indicator, has plateaued in the last 24 hours. Nonetheless, Ethereum, like the rest of the market, could be headed for a major breakout soon. Several important factors could trigger such a rally for Ethereum.

Expectations of a Rate Cut In the US Today

One of the key factors that could trigger an Ethereum rally is the upcoming rate cuts in the US later today. The Federal Reserve is expected to cut costs today by 25 basis points. This will be the second rate cut in the year and has big implications for asset prices, especially high-risk assets like cryptocurrencies. It could trigger a parabolic price move for Bitcoin, which by extension, could trigger a rally for Ethereum and other altcoins.  The odds of this happening are already starting to show in the charts

Technical Analysis – Ethereum Price Forms a Bullish Engulfing Pattern Intra-Day

Ethereum was in a correction since December 16, when it hit a high of $4107.8. However, this trend has changed today after Ethereum made a bullish engulfing pattern on the H1 chart. Bulls have been gaining momentum since the bullish engulfing. It’s an indicator that after a two-day correction, bulls are back are retaking control.

This coincides with the upcoming expectations of a rate cut by the US Federal Reserve later in the day. If the Fed rate cut triggers a price rally across the cryptocurrency market, the key level to watch for Ethereum would be the week’s high of $4107.80. Ethereum’s all-time high of $4800 would come into focus if this resistance is broken.

On the other hand, if there is a correction during the volatility that follows rate decisions, the key level to watch would be the $3824.8 support. A breach of this support could see Ethereum drop to around $3500 in the short term.

However, given that the expectations are usually bullish around rate cuts, the odds are high that there will be a spike. This means the key level to watch in the day is resistance, which if breached could pave the way for an Ethereum rally to $4800.

Ethereum ETFs Gaining Traction

Besides the rate cuts expected to uplift the entire market, Ethereum ETFs are also sending bullish signals. Yesterday, December 18, saw a continuation of net inflows into Ethereum ETFs.

BlackRock spot ETFs alone saw inflows of $30 million, an indicator of the growing positive reception of Ethereum among institutional investors. This could add to the momentum around Ethereum especially now that bullish sentiment is expected to be given a push by a rates cut.

💥BREAKING: BlackRock bought $30.72M worth of #Ethereum yesterday! pic.twitter.com/EYdS5UL1ft

— Crypto Rover (@rovercrc) December 17, 2024

Social Media Sentiment for Ethereum Turning Positive

Ethereum has experienced negative social media sentiment for the better part of 2024. This can be attributed to its ongoing underperformance at a time when many top cryptocurrencies have recorded gains of 200%+. However, sentiment has recently changed, and Ethereum price predictions are turning positive.

Many point to Ethereum’s potential to hit $10k or higher within this cycle. Such predictions are a big deal as they could help drive FOMO around Ethereum especially if there is strong bullish sentiment across the market.

#Ethereum $11,000 in 2025? 🚀

The last time #ETH had a Golden Cross on the weekly chart was in early 2021, triggering a 200% surge in just 10 weeks.

Another Golden Cross is happening now. If history repeats, it could propel #Ethereum to $11,000! pic.twitter.com/V5x3LAHnM1

— Titan of Crypto (@Washigorira) December 14, 2024