Ethereum's Potential Last Shakeout Prior to Reaching a New All-Time High (Cost Analysis of Ethereum)
Ethereum, the second-largest cryptocurrency by market capitalisation, is poised for a significant milestone as it approaches the $5,000 mark. According to the latest technical and sentiment analysis, the probability of Ethereum reaching $5,000 in the near future is high, with prediction markets like Polymarket predicting a 91% chance by the end of 2025.
The cryptocurrency has been on a steady upward trajectory since June, rebounding from the 100-day moving average near $2,100. Currently, Ethereum is trading around $4,800-$4,900, supported by strong institutional interest, record ETF inflows, favourable Federal Reserve rate cut expectations, and key network upgrades improving scalability and staking incentives.
Institutional Staking and Accumulation
Growing participation by institutions and whales accumulating ETH signals confidence in higher prices ahead. This trend is supported by the recent influx of funds into BlackRock’s iShares Ethereum ETF, underpinning demand.
Technical Indicators
ETH is at a critical inflection point where a sustained breakout above $5,000 could open paths to $6,200 and $7,000 levels before year-end. Momentum indicators such as the RSI are signaling a potential overbought condition, suggesting the possibility of a consolidation or pullback. However, the recent bullish crossover between the 100-day and 200-day moving averages indicates strong market optimism.
Network Upgrades
Recent upgrades like "Pectra" have restored deflationary economics, improving the supply-demand balance. This, coupled with the decline in exchange reserves, suggests a large portion of ETH has been moving off exchanges, likely into cold storage or staking, tightening available liquidity and creating favourable conditions for upward price pressure.
While the overall sentiment and technical setup are strongly positive, investors should remain aware of crypto market volatility and potential regulatory risks that could affect the trajectory. Nevertheless, the collective market sentiment, supported by prediction market odds and institutional signals, indicates Ethereum is very well positioned to cross $5,000 soon and possibly rise further during 2025.
The $4,000 level is currently a strong support zone, and a sharp breakout beyond the $4,800 all-time high is more likely before any notable correction. The upper boundary of the ascending channel is already above the previous $4,800 all-time high, making the $5,000 mark a realistic target for Ethereum in the weeks ahead. The recent surge to around $4,700 aligns with the supply squeeze narrative, further supporting the bullish outlook.
On the 4-hour chart, Ethereum has been moving within a broad ascending channel for the past few months, suggesting a continued upward trend. However, the RSI indicator on the 4-hour chart is in overbought territory, hinting at a potential consolidation or pullback. Investors should keep a close eye on these developments as they unfold.
[1] Polymarket: https://polymarket.io/ [2] CoinDesk: https://www.coindesk.com/ [3] CryptoSlate: https://cryptoslate.com/ [4] Glassnode: https://glassnode.com/ [5] Messari: https://messari.io/
This article is intended for informational purposes only and should not be taken as financial advice. Always do your own research before making investment decisions.
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