Over the past three weeks, Ethereum’s native token, Ether (ETH), has maintained a slow and steady rise, increasing by 28% since November 18th. Despite experiencing a flash spike down to $3,615 on December 5th, the altcoin has bounced back and now trades above $4,000.
Ethereum’s Yearly High Value and Trend Formation
Ethereum’s yearly high value remains at $4,098, and the trend continues to form a higher high and higher low pattern in the 4-hour chart. This indicates that Ethereum is experiencing a period of consolidation before making another significant move upwards.
Relative Strength Index (RSI) Indicators
The relative strength index (RSI), an indicator used to measure the magnitude of recent price changes, is currently below the overbought region. This suggests that Ethereum’s price movement is not yet overextended and has room for further growth.
A "Paradigm Shift" Ahead?
With Ethereum on the brink of breaking $4,000, an anonymous crypto analyst, known as "venture founder," has set higher targets for 2025. According to their analysis, Ethereum is consolidating inside a three-year ascending triangle pattern, which indicates that the altcoin is approaching a new "paradigm shift."
Higher Targets and Price Predictions
The trader explained that Ethereum likely to repeat its impulsive breakout after between 2016-2017, shooting to new all-time highs. The analyst has set a price target of $15,937 by May 2025.
A $16,000 ETH would take the altcoin’s total market cap above $1 trillion for the first time in history. However, the analyst noted that Ether must close its weekly candle with $3,800 at support to increase the probability of retesting its all-time high at $4,878 or reaching its immediate price target.
"Golden Cross" Breakout and Giga Pump
Similarly, Honey, an independent crypto trader, indicated that Ether’s "golden cross" on the 1-day chart is breaking out according to previous bull markets. The trader said that ETH is in the beginning stages of a "giga pump" that will take the altcoin to new all-time highs.
Ethereum Spot ETFs Gaining Institutions’ Interest
After being overshadowed by spot BTC ETF’s performance in 2024, spot ETH ETFs are beginning to gain institutions’ interest towards the end of the year. According to Cointelegraph, the altcoins’ financial instrument witnessed its largest daily inflows since its launch, with $428.5 million.
Ethereum ETF Flow
Spot Ether ETFs have witnessed more than $1.3 billion in inflows since November 18th, with BlackRock’s iShares Ethereum Trust leading the charge with over $500 million in inflows this week, taking its total inflows to $2.6 billion.
Improving DeFi Metrics
Alongside smart money interest and positive price action, Ethereum’s DeFi metrics are also improving. Data from DefiLlama highlighted that total value locked on Ethereum’s chain reached a new yearly high of $77 billion on December 5th.
Total Value Locked (TVL) Chart
Ethereum TVL chart. Source: DefiLlama
Conclusion and Investment Disclaimer
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
As Ethereum continues to rise above $4,000, investors and traders are eagerly waiting to see what the future holds for the altcoin. With improving DeFi metrics, institutions’ interest in spot ETH ETFs, and analyst predictions of new all-time highs, Ethereum is certainly an altcoin worth keeping an eye on.
Key Takeaways
- Ethereum’s native token, Ether (ETH), has increased by 28% since November 18th.
- The altcoin has bounced back from a flash spike down to $3,615 and now trades above $4,000.
- Ethereum is consolidating inside a three-year ascending triangle pattern, indicating a "paradigm shift" ahead.
- Analysts predict new all-time highs for Ethereum, with some setting targets as high as $15,937 by May 2025.
- Spot ETH ETFs are gaining institutions’ interest, with over $1.3 billion in inflows since November 18th.
References
- Cointelegraph: "Ethereum hints ‘paradigm shift’ above $4,000"
- DefiLlama: "Total Value Locked on Ethereum’s Chain Reaches New Yearly High"
- X.com: "Ethereum Bi-Weekly Analysis by Venture Founder"
