Ethereum (ETH) has faced a recent decline in price, dropping from its yearly high of $4,100 to around $3,334. Analysts believe that ETH is currently in a bearish trend and is trading below the 100-hourly Simple Moving Average.
There is a critical resistance level at $3,420, and if ETH fails to maintain support levels at $3,200, $3,120, and $3,000, further downward movement is expected. However, if ETH breaks through the resistance, it could reach $3,500 and potentially $3,650.
Despite the price decline, Ethereum ETFs have seen strong performance, with net inflows recorded for seven consecutive days. In late November, there was a significant influx of $2.2 billion, and more recently, $62.7 million in net inflows, bringing the total net asset value of these ETFs to $1.215 billion. BlackRock's ETHA has seen the highest inflows with $143 million, followed by Fidelity's FESH with $26.1 million. This increase in institutional interest reflects growing confidence among investors and could contribute to the asset's price recovery.
The Ethereum NFT market is also showing strength, with weekly sales volume reaching $201 million, accounting for 66% of total sales. Projects like Pudgy Penguins and LilPudgys have been driving demand, with total sales of $54.4 million and $20 million, respectively. This indicates broader interest in Ethereum's ecosystem, which could support its price in the future.
Analysts have made bold predictions for Ethereum's price potential. VanEck forecasts that ETH could reach $6,000 by the fourth quarter of 2025 and $22,000 by 2030. Some experts speculate that a rally above the $8,800 level is possible if ETH surpasses the psychological barrier of $4,100. Breaking this level could lead to a run towards the all-time high of $4,865.
Technical analysis suggests that Ethereum tends to underperform Bitcoin for a limited period before surpassing it. Currently, the market is in the eighth month following the Bitcoin halving event, which historically has preceded significant price movements for Ethereum. Analysts believe that the ETH/BTC ratio could increase post-halving, potentially reaching 0.39, indicating a bullish outlook for Ethereum relative to Bitcoin.
Analyst Benjamin Cowen suggests that a rally for Ethereum could begin in early 2025, drawing parallels to previous market cycles. While Ethereum experienced declines in the first and second quarters of 2022, the latter half of the year saw a resurgence. Historical patterns from 2021 and 2017 further support the idea that Ethereum may experience a favorable shift in performance in the latter part of 2025 and early 2026.
As Ethereum navigates the cryptocurrency market, the interplay between ETF inflows, NFT market dynamics, and technical analysis will be crucial in determining its price trajectory. The current bullish sentiment among institutional investors and the resilience of the NFT sector position Ethereum for potential growth, provided it can overcome resistance levels and maintain support.