TL;DR
- Ethereum (ETH) is expected to reach $5,000 by the end of 2024.
- Whale accumulation of ETH and support at $3,500 drive optimism.
- Technical indicators and on-chain metrics suggest a potential bullish rally.
Ethereum (ETH), like many other leading cryptocurrencies, experienced a significant correction in early June, interrupting its bullish path.
Currently, it trades just above $3,500, representing a 7% decline over a two-week period according to CoinGecko data.
Despite this recent drop, some analysts remain optimistic about its future, speculating that it could reach a new all-time high by the end of 2024.
One example of this optimism is X user Jelle, who claimed that ETH has “successfully turned” the $3,500 mark into support.
$ETH successfully turned $3,500 into support!
Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year.
Let's roll. pic.twitter.com/k438SvCX2o
— Jelle (@CryptoJelleNL) June 17, 2024
Based on this, the analyst expects a rally towards the coveted $5,000 level sometime this year.
This sentiment is bolstered by Ali Martinez, who noted that whales have purchased over 700,000 ETH in the last three weeks, amounting to a staggering $2.48 billion at current rates.
Such a move reduces the available supply of Ethereum on exchanges, potentially leading to a price increase assuming demand remains steady or rises.
Another analyst predicting a bright future for the second-largest cryptocurrency by market capitalization is Wolf.
This X user argued that ETH has been in a bullish mode since the beginning of the year.
They forecast increased volatility in the coming months and a potential bull run that could see ETH rise to $5,000 by the end of Q3 2024.
Technical Indicators and On-chain Metrics in ETH
Technical indicators and on-chain metrics also suggest that ETH’s valuation could take off soon.
One key indicator is the Relative Strength Index (RSI), a technical analysis tool that measures the speed and change of price movements.
Since May 23, the RSI has not dropped below a ratio of 70, typically indicating that ETH is overbought and could be due for a correction.
However, consistently high levels can also suggest strong bullish momentum.
Meanwhile, ETH exchange netflows have shown a trend towards outflows over the past month.
This shift from centralized entities towards self-custody methods is viewed as bullish since it decreases immediate selling pressure.
The combination of strong technical support, significant accumulation by major investors, and positive on-chain metrics paints an optimistic picture for Ethereum in the near future.
If these factors hold, the possibility of ETH reaching $5,000 by the end of 2024 seems increasingly plausible.
