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The start of the year has been relatively calm in the cryptocurrency markets, with Ethereum (ETH) trading sideways in the $3,300 range for approximately a week.
However, volatility is on the horizon and is expected to arrive soon. Technical analysis indicates that ETH may face short-term declines.
The current Ethereum price is situated below both its 21 and 50-day moving averages and beneath the significant short-term resistance level around $3,500.
A retest of crucial support at the 200-day moving average near $3,000 could be forthcoming. However, traders should be cautious not to anticipate prolonged downside movement.
The recent election victory of US President Donald Trump in November sets the stage for a potential new era for the US cryptocurrency industry and broader markets over the next four years, likely accelerating adoption at an unprecedented pace.
Moreover, historical price trends indicate that a surge in Ethereum’s value could be imminent.
Is an Ethereum Price Surge on the Horizon?
The incoming pro-crypto US President Donald Trump is expected to take office with a team of supporters and advocates from the cryptocurrency sector.
Simultaneously, the current anti-crypto SEC Chair Gary Gensler is anticipated to be replaced by Trump’s appointee Paul Atkins, which should initiate a new phase of collaboration between the SEC and the cryptocurrency industry, moving away from the current adversarial climate.
Additionally, the new pro-crypto Congress is likely to pass legislation that provides clarity for the industry.
They may even support measures to establish a strategic Bitcoin reserve, which Trump could initiate through an executive order.
#Bitcoin will go parabolic after the Trump inauguration.
pic.twitter.com/yUThE9U0Lu
— Crypto Rover (@rovercrc) December 29, 2024
All of this is favorable for Bitcoin, but it is even more advantageous for altcoins like Ethereum. While anti-crypto sentiments in the US over the past few years have not been able to prevent the establishment of Bitcoin ETFs (or Ethereum ETFs), they have significantly hindered innovation and suppressed altcoin prices.
This suggests that altcoins have considerable potential for recovery compared to Bitcoin, which has already reached record highs of $108,000 in December.
This indicates that January could be a promising month for ETH. Indeed, the Ethereum price could rapidly rebound to multi-year highs above $4,000 if it manages to surpass the $3,500 resistance.
While the fundamental outlook for ETH is positive, its price also reflects historical patterns, which further support a bullish scenario.
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This Significant Historical Price Pattern Indicates Ethereum ATHs Are Approaching
During the previous cryptocurrency bull market cycle, when Bitcoin entered a new and aggressive phase of price discovery in December 2020, Ethereum was trailing behind and still significantly below its 2017 all-time highs.
Although ETH performed well in January 2021, it did not fully engage in price discovery until February 2021.
In 2024, Bitcoin began full-scale price discovery in November, while Ethereum remains well below its all-time highs.
If history is set to repeat itself, as the strong fundamental backdrop suggests is likely, the Ethereum price could be on the verge of surging back to retest its record highs.
This could potentially set the stage for ETH to enter a new phase of price discovery in February above $5,000.
There continues to be a significant amount of skepticism and FUD surrounding Ethereum. Yes, other chains may be faster, cheaper, and processing more transactions, and there is considerable development occurring outside the Ethereum ecosystem.
However, to assume that Ethereum will not remain a key player is misguided. Firstly, it continues to be the oldest and most trusted DeFi chain, commanding 56% of total value locked in smart contracts, according to DeFi Llama.
Numerous influential companies globally are building on it.
This includes Wall Street leader BlackRock, which has primarily chosen Ethereum as their DeFi chain.
On the last day of 2024, the ETH ETFs had greater net inflows than the BTC ETFs
+$36 million for ETH and +$5.3 million for BTC
2025 belongs to Ethereum and ETH— sassal.eth/acc
(@sassal0x) January 1, 2025
With the backing of BlackRock, and given its status as the only other major cryptocurrency besides Bitcoin to have secured spot ETFs in the US, Ethereum is positioned for significant institutional inflows, which have already been increasing in recent weeks, according to The Block.
According to Steno Analysis, the Ethereum price is projected to soar more than 2x to above $8,000 in 2025.
Steno Analysis predicts unprecedented crypto growth and new all-time highs in 2025
Steno Analysis forecasts that 2025 will be the crypto market’s most significant year yet, with Bitcoin and Ethereum reaching new all-time highs of 150k and 8k, respectively. The bullish outlook is driven by… pic.twitter.com/n50eqBGUuZ— The O Show (Wendyo.eth) (@The_O_Show_) January 1, 2025
Bears should be cautious. This bull market likely has plenty of momentum remaining. Shorting could be risky.
The post Ethereum Price Surge Imminent, This Historical Price Pattern Predicts appeared first on Cryptonews.
