Ethereum Targets a Bold $3,500 Rally: Analyzing the Key Factors Behind ETH's Resilient Price Surge
[TL; DR]
ETH may soon break above its current market range and rise towards $3,500.
Cathie Wood Predicts that Ethereum may reach $166,000 by 2030.
Ethereum has a Fear and Greed index reading of 70 and an RSI value of 46.15.
Introduction
After the launch of Dencun Upgrade the price of Ethereum rose towards the $3,500 mark. That steady price increase, despite some minor post-upgrade fluctuations, showed ETH’s resilience. Although the price of ETH, BTC and other major cryptocurrencies fell after the Bitcoin halving, the crypto market expects a strong recovery soon.
This analysis focuses on Ethereum’s price rise towards the $3,500 key support level. We will also uate the implications of key market indicators such as Global In/Out of the Money (GIOM) and NUPL on ETH price movement. Finally, we will look at the coin’s price analysis.
Ethereum’s Price Targets the $3,500 Level
Ethereum is one of the most resilient crypto assets as its price has remained above the $3,000 support level for a long period. As long as ETH maintains its position above this price level it may gather enough momentum to rally towards $3,500.
The last time the ETH price was above $3,500 was on 12 April, a few days before the Bitcoin halving event. The following monthly ETH price chart shows its price movement since 1 April.
Ethereum Price Movement- CoinGecko
As the ETH price chart indicates, its price dropped below $3,500 on 12 April. This means that for the past two weeks the ETH value was fluctuating between $3,000 and $3,533 except for momentary dips and shoots. Also, its recent price trajectory has generated much investor Optimism that it will soon rebound above $3,500 and possibly shoot towards $4,000.
Significantly, the Global In/Out of the Money (GIOM) indicates an impending Ethereum price rally. This is because the GIOM denotes that much of the ETH’s circulating supply is contained within a 20% rally. The next diagram summarizes Ethereum’s current state.
Ethereum GIOM IntoTheBlock
As per the Global In/Out of the Money (GIOM) chart, close to 9.14 million ETH which translates to over $27.4 billion was purchased when the altcoin’s value was between $3,537 and $3,118. Therefore, since a sizable fraction of the coin is within a tight price range many Ethereum investors are likely to hold on to their coins until it reaches ETH price target.
Investor Optimism for a Potential Price Increase.
The Net unrealized profit/loss (NUPL) indicator further validates the existing Ethereum crypto market sentiment. Basically, the NUPL indicator shows the profit or loss the investors will have if they sell their asset at a certain time.
When the NUPL is high the investors will make profit if they sell the asset. If the NUPL is low they will incur losses if they sell it. Currently, the NUPL indicates that Ethereum is in the optimism zone which may trigger a rally any time soon.
Read also: Staking or not, ETH is no security
Ethereum NUPL - Glassnode
Based on the above graph, ETH’s NUPL reading is around 0.6, showing that there is optimism in the market. However, this also indicates that the asset is still far away from the next market top.
In addition to the above indicators there are several industry leaders who have talked about Ethereum market resilience. As per Yahoo Finance article, Cathie Wood, Ark Invest CEO, believes that the bullish ETH will continue to dominate the crypto price charts.
The reason is that its bullish position in the market is a result of its economic utility since it drives decentralized finance applications. Most of these applications have many DeFi functions that support ETH staking, borrowing, lending and trading. Wood predicts that many retail and institutional investors will adopt these applications on a large scale.
Wood is well-known in the crypto sector due to her near accurate predictions of price movements of major cryptocurrencies like Bitcoin and ETH. The reason she may have such predictive focus could be Ark Invest’s exposure to bitcoin derivatives. As an example, Ark Invest owns and manages a spot Bitcoin ETF (ARKB) and an Ethereum futures ETF (ARKZ).
Already, on a Bitcoin Day in March Wood predicted that BTC and ETH will reach highs of $3.8 million and $166,000 by 2030 respectively. If ETH reaches a high of $166,000 by 2030 it means that a person who invests $1,000 in the coin now will have $$54,330 by that time.
ETH’s institutional investment will come in different ways such as the launch of spot ETH ETFs. The recent approval of spot ETH ETFs in Hong Kong could be one reason the altcoin has remained bullish despite a depressed crypto market. As a fact, the Securities and Futures Commission (SFC) of Hong Kong recently approved several spot Bitcoin and Ethereum exchange-traded funds (ETFs).
Thus, apart from positioning Hong Kong as a potential future crypto hub, the ETFs will likely attract much investment in both BTC and ETH. China Asset Management, Bosera Capital, and HashKey Capital Limited are some of the Hong Kong based financial asset management firms whose spot crypto ETFs have been approved.
The crypto ETFs may stimulate further investment in cryptocurrencies in the city. That development may also influence other countries to introduce similar crypto investment vehicles. Hong Kong’s approval of spot ETH and BTC ETFS comes a few months after the United States SEC approved 11 spot bitcoin ETFs.
Ethereum Market Analysis: Price Prediction and Support Levels
The current Ethereum price analysis indicates that the coin is consolidating above $3,100 and could pump as soon as it surpasses the $3,220 resistance zone. Currently, ETH is changing hands at $3,147.77 after gaining by 1.1% within the last 7 days as the next price chart shows.
Related news: Ethereum Price Prediction & Forecast for 2024, 2025, 2030
ETH Price Changes – CoinGecko
As observed on The Graph, ETH has maintained its price above $3,000 for over two weeks showing that the bulls are protecting that support level. With that, the bullish ETH has an opportunity to bounce back above $3,500. However, if the altcoin slips below $3,000 it may head towards the $2,736 support level which may invalidate its bullish thesis.
As you note, ETH is a few cents below the next resistance level at $3,150. The other notable resistance levels are $ 3,205.60, $ 3,250.8, $3,300, $ 3,310.54 $3,400 and $3,729. On the other hand, the key ETH support levels include $ 3,100.67, $ 3,040.99, $ 2,995.74 and $2,850.
The current cryptocurrency market sentiment for ETH is neutral since it has an RSI reading of 46.15. On the other hand, it is below the 50 simple moving average (SMA) but above the 200 SMA as the next graph indicates.
Ethereum Market Dynamics - CoinCodex
Looking at the above diagram ETH’s 50 SMA may keep falling while its 200 SMA may rise. Finally, the Fear and Greed read is 70 which shows a neutral market sentiment. Only a reading of between 75 and 100 indicates extreme greediness associated with overbought market conditions. In the meantime, the Ethereum price prediction points at a target of $ 3,265.45 by 30 May.
Conclusion
Ethereum currently trading at $3,147.77 has a price target of $3,500. There is a high possibility that it may break out of its neutral zone and surge upwards. Cathie Wood believes that the greater adoption of ETH by institutional investors may push its price up. Recently, Hong Kong approved several spot ETH ETFs.
FAQs about Ethereum Price Targets
How much will 1 Ethereum be worth in 2030?
Ethereum has the potential to reach $166,000 by 2020. The main driver of its bullish movement is the adoption by institutional investors and the introduction of different ETH derivatives like spot ETFs.
How high will Ethereum go in 2024?
By the end of 2024 the price of Ethereum may be fluctuating between $4,500 and $5,000 depending on how its market dynamics will evolve during the period. The current Ethereum short term target is $3,500.
What is the price target for ETH 2025?
The Ethereum price may range between $6,000 and $7,000 during 2025. However, its price performance also hinges on the total crypto market sentiment during 2024 and 2025.
What will 1 ETH be in 2050?
The Ethereum price may fluctuate around $52,692 which may result in a market capitalization of about $5.91 trillion based on its current circulating supply. Currently, ETH has a market capitalization of $383,578,822,605 while Bitcoin, the number one cryptocurrency, has a market cap of $1,236,236,914,860.
