Ethereum Price Prediction: ETH Eyes $3600 Despite Massive Selloff

Highlights:

• Ethereum is holding steady above $3129.1 and sending bullish signals
• Rally despite a whale offloading Ethereum at a loss
• Rally off current price levels and put $4000 in focus

Ethereum (ETH) is still way below its all-time highs compared to most altcoins. However, it is showing signs of a rebound as the broader market turns bullish again. At the time of going to press, Ethereum was trading at $3342.50, up by 4.29% in the day. Ethereum trading volumes are also on the rise in the day, driven by the rising bullish sentiment across the market.

At the time of going to press, Ethereum trading volumes have shot up by 34.27% to hit a high of $28.54 billion. This is an indication of the rising bullish sentiment around Ethereum in the short term.

Bitcoin Price Action Likely to Push Ethereum Price Higher

Multiple factors could help sustain the momentum Ethereum has built up this week. One of them is Bitcoin’s price action. Bitcoin is currently flirting with the $100k price level, and the odds are that it will likely keep rising. That’s because of positive inflation data coming out of the US. This has helped push money towards Bitcoin and other high-risk assets.

Since altcoins, including Ethereum, follow in Bitcoin’s price action, then chances are that Ethereum could be headed higher. Also, with the incoming Trump presidency expected to be largely pro-crypto, Bitcoin could easily push to prices as high as $150k in the foreseeable future. This could position Ethereum for a rally back to its 2021 all-time high of $4800.

Ethereum Resilient Despite Whale Selloff

Besides an increasingly bullish Bitcoin likely to uplift Ethereum, there is also the fact that Ethereum is exhibiting resilience despite whale selloffs. Due to the prolonged stagnation in the price of Ethereum, some whales appear to be giving up in search of better opportunities.

On-chain data shows that one whale has recently sold 10,070 Ethereum at an average price of $3280. The whale appeared to be willing to take a loss as they lost $1 million out of the sale. While such news usually triggers selloffs, it has had little impact on Ethereum’s intra-day price action. This could be an indicator of two things, both favorable for Ethereum.

Whales are dumping $ETH at a loss!

9 hours ago, 3 wallets(likely belonging to the same whale) sold 10,070 $ETH for 33M $DAI at $3,280, losing $1M.

This whale withdrew 24,029 $ETH($81.3m) from #Binance via 10 new wallets 3 weeks ago and currently holds 13,959 $ETH($45.48M).… pic.twitter.com/5lqFegRu3i

— Lookonchain (@lookonchain) January 13, 2025

One of them is that Ethereum has bottomed out and investors do not expect any further selloffs for Ethereum to prices below $3000. The second is that investors are super bullish on Ethereum and do not expect a whale selling their holdings to have an impact on the price. Both are a big deal as they point to confidence in Ethereum. At a time when the broader market is turning bullish, this could be a signal that Ethereum is headed higher.

Ethereum Continues to Chart a More Decentralized Future

Ethereum also continues to get more innovative in dealing with scalability, while maintaining decentralization. A while back Ethereum moved towards L2s as one of the best pathways for scaling. To ensure that this pathway works even better, Ethereum founder, Vitalik Buterin has emphasized the importance of user-controlled L2s.

The @Soneium situation is a good live demonstration of how launching an ethereum L2 is great for businesses *and* users.

Businesses can make very fine-grained choices around how much control they keep vs give to users.

But whatever rules they choose, that's what the rules are.… https://t.co/jmaCRDsyF0

— vitalik.eth (@VitalikButerin) January 15, 2025

Such comments that emphasize decentralization give Ethereum strong intrinsic value going into the future. That’s because the more decentralized a network is, the more value it has since it cannot be shut down. In this age when privacy and personal freedoms are under threat, this could see the value of Ethereum go up significantly over time.

Technical Analysis – Ethereum Price Holding Above Key Support Level

From the charts, Ethereum is range-bound after establishing strong support at $3129.1 earlier in the week. If bulls maintain the momentum established earlier in the day, the key level to watch would be the $3684.6 resistance.

A rally through this resistance could pave the way for a retest of $4000. With bullish sentiment on the rise across the financial markets, a rally through the $3684.6 resistance could be a realistic possibility in the short term.