Ethereum Price Prediction: Money Rotation in Crypto Could Push Ether to $4K Soon

Highlights:

• Ethereum is trending towards intra-day resistance at $3742.2
• A rally through this resistance could push Ether to $4K
• Money rotation amongst altcoins driving Ethereum demand

Ethereum has sustained momentum over the last few days, proving the naysayers wrong. While most altcoins are sending mixed signals today, Ethereum is pushing toward the $4000 mark, which brings its all-time highs into focus. At the time of going to press, Ethereum was trading at $3732.20, up by 3.24% in the day.

Ethereum trading volumes are also on the rise, up by 8.15% in the day to hit a high of $43.75 billion. The rising momentum has pushed Ethereum’s market cap to a high of $449 billion. From the charts, there is a good chance that Ethereum could be headed higher and soon hit the $500 billion market cap.

Technical Analysis – Ethereum Trending Towards Resistance as Bulls Take Control

From a look at the intra-day charts, Ethereum has been in a sustained rally since hitting a strong at $3545.5 on December 3. However, for the rally to continue, Ethereum needs to push through the key intra-day resistance at $3742.2. If bulls can push through this resistance, then $4000 would come into focus in the day. A more sustained rally could push Ethereum toward its all-time high of $4800.

On the flipside, if bulls fail at the $3742.2 resistance, then two scenarios could follow. The first is a possible consolidation between the $3742.2 resistance and the day’s support at $3652.0. The second scenario is where bears take control and push Ethereum through the $3652.0 support. In such a case, a correction to $3500 could follow.

Bull Run Money Rotation Favors an Ethereum Price Rally

Of these scenarios, the odds are higher that bulls will sustain the momentum they have built up so far. One of the key factors that support such a push higher is the ongoing market rotation in the cryptocurrency market. In past cryptocurrency bull markets, Bitcoin pumps first, then Ethereum uplifted the altcoin market as profits made in Bitcoin started to flow into altcoins.

In this cycle, Ethereum has been lagging while Bitcoin rallied, and money appeared to be sidestepping Ethereum. However, with the ongoing Ethereum price rally and many ERC-20 tokens starting to reawaken, confidence in Ethereum could rise again. Since Ethereum is already massively undervalued compared to many top altcoins that are already 3X to 5X up, Ethereum could be headed much higher in the short term.

$ETH breakout will be legendary

$10,000 #Ethereum is programmed this cycle! pic.twitter.com/IFIHdx0Gt0

— Elja (@Eljaboom) December 3, 2024

Ethereum Reliability Attracting Investors

There is also the fact that Ethereum continues to prove itself as the most reliable network among the L1s. While many of Ethereum’s competitors thrive on speed and low costs, they do so at the expense of decentralization. This is evident in the fact that some of the best-known ones tend to experience outages every so often, an indicator that they are not decentralized. 

Ethereum is also continually making technical moves that will help keep it decentralized and trustless in the long term. This further entrenches the perception that Ethereum has as a long-term investment. With money now flowing into crypto in expectation of a mega bull cycle, Ethereum’s inherent strengths could help push it to new highs in the short term.

Ethereum ETFs Continue to Record Positive Net Inflows

The Ethereum ETF inflows confirm the rising bullish sentiment around Ethereum. Since November 22, Ethereum has experienced uninterrupted net inflows into its ETFs. On December 3, Ethereum ETFs recorded inflows of $36.37 million, much higher than the $6.52 million they recorded on December 2.

A Recap on Ethereum Price

Overall, a lot is going on for Ethereum that is likely to push it through intra-day resistance. From rising institutional interest to money flowing into Ether, as has happened in past bull cycles, the future appears bright. In the very short term, $4000 is a realistic target for Ethereum.