Over the past three weeks, Ethereum’s native token, Ether (ETH), has experienced a slow but steady increase in value, rising by 28% since November 18th. Despite experiencing a brief dip to $3,615 on December 5th, ETH has rebounded and now trades above $4,000.
Technical Analysis: A Higher High and Higher Low Trend
The 4-hour chart of Ethereum demonstrates a clear higher high and higher low trend, indicating a strong upward momentum in the market. The yearly high value remains at $4,098, which is a testament to ETH’s resilience and strength.
RSI: Below the Overbought Region
Another crucial indicator of ETH’s health is its Relative Strength Index (RSI), which measures the magnitude of price changes. Currently, the RSI is below the overbought region, indicating that ETH is not experiencing excessive buying pressure, which could lead to a potential correction.
Paradigm Shift: A New Era for Ethereum?
An anonymous crypto analyst, known as "venture founder," has set higher targets for 2025. According to their analysis, Ethereum is consolidating within a three-year ascending triangle pattern and is approaching a new "paradigm shift." This could potentially lead to an impulsive breakout, similar to the one seen between 2016-2017.
Price Target: $15,937 by May 2025
The analyst has set a price target of $15,937 for ETH by May 2025. If this target is met, it would take Ethereum’s total market capitalization above $1 trillion for the first time in history.
ETH Must Close Weekly Candle at Support to Reach ATH
However, the analyst noted that Ether must close its weekly candle with a price of $3,800 at support before reaching its all-time high at $4,878 or its immediate price target. This is crucial for ETH’s short-term prospects and highlights the importance of technical analysis in predicting market trends.
The ‘Golden Cross’ and a Giga Pump
Independent crypto trader "Honey" has also indicated that Ether’s "golden cross" on the 1-day chart is breaking out according to previous bull markets. This could be an indication of the beginning stages of a "giga pump," which would take ETH to new all-time highs.
Ethereum Spot ETFs Gain Institutional Interest
After being overshadowed by spot Bitcoin (BTC) ETF’s performance in 2024, Ethereum spot ETFs are starting to gain interest from institutions. According to recent data, the altcoin’s financial instrument witnessed its largest daily inflows since its launch, with $428.5 million.
Over $1.3 Billion in Inflows Since November 18th
Since November 18th, spot Ether ETFs have seen more than $1.3 billion in inflows. BlackRock’s iShares Ethereum Trust has led the charge with over $500 million in inflows this week, taking its total inflows to $2.6 billion.
Smart Money Interest and Positive Price Action
The increasing interest from smart money investors, combined with positive price action, is a clear indication of ETH’s growth potential. This trend is further supported by Ethereum’s DeFi metrics, which are also improving.
DeFi Metrics: Total Value Locked (TVL) Reaches New Yearly High
Data from DefiLlama highlighted that the total value locked on Ethereum’s chain reached a new yearly high of $77 billion on December 5th. This is a testament to ETH’s growing adoption and usage in the decentralized finance space.
Conclusion
Ethereum’s native token, Ether (ETH), has maintained a steady rise over the past three weeks, with a 28% increase since November 18th. The altcoin’s technical analysis, including its higher high and higher low trend, RSI below the overbought region, and upcoming "paradigm shift," are all indicative of ETH’s growth potential.
With institutional interest in Ethereum spot ETFs increasing, and DeFi metrics improving, ETH is poised for further growth. As always, every investment and trading move involves risk, and readers should conduct their own research before making a decision.
References
- Cointelegraph/TradingView
- X.com
- DefiLlama
