Ethereum on track for $5,500 by year-end?

By Kent Tenix - Senior Crypto Journalist
Ethereum
Created by Taqi Khan from BTCRead

Ethereum is showing signs of strength reminiscent of Feb. 2024, when ETH surged by 80% in just 40 days. The uptrend that started in mid-Nov. 2024 is still going strong, with some expecting ETH to reach $5,500 by year-end.

According to Glassnode, one of the key indicators for Ethereum is Realized Cap, which reached an all-time high at $243.45 billion as ETH changes hands at $3,800. This has been a historical signal for when Ethereum goes on a bull run, so it could keep going up.

Realized Cap: The measure of the price at which each coin last moved. It pinpoints market tops and bottoms. This increase in this metric is an indication that coins are being spent at prices higher than previously, meaning that ETH is being revalued.

Source: Glassnode

On the other hand, a decline may indicate a possible downward correction in prices as coins are being spent at lower prices. However, Ethereum’s Realized Cap is growing, meaning the confidence of holders is improving and may push the price upward.

This view is supported by Ethereum’s MVRV Long/Short Difference, which has climbed to 5.67%. The positive reading means that long-term holders are sitting on more unrealized profits than short-term holders.

Source: Santiment

Although a negative MVRV Long/Short Difference is usually a bearish outlook, this move into positive territory falls in line with the overall market sentiment of being bullish. The last time ETH surged to $4,100 was at the occurrence of the above condition.

Short-term outlook: Ethereum could reach $4,200 or $4,500

A look at the daily chart of ETH further illustrates the case. It’s a replication of the prevailing trend from the one in which ETH saw its annual high back in June. After being pushed down momentarily, just as the decline from $2,700 to $2,300 saw in October, ETH bounced strongly up, while the momentum indicator RSI showed up.

Source: Tradingview

If the trend continues, ETH can touch a short-term high of $4,200. If the uptrend pressure sustains, ETH might even jump as high as $4,500. In the opposite scenario, if Realized Cap falls or buying pressure slackens, prices could always fall below $3,500 levels. The next couple of weeks will, therefore, be crucial to determining Ethereum’s course of future action.

Related | US SEC is set to reject two applications for Solana spot ETFs

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Senior Crypto Journalist
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Kent brings extensive experience in finance and the digital asset space, backed by a strong foundation in Computer Science following her arts degree. She is an expert at crafting compelling financial narratives using data-driven analysis. Her insightful coverage of crypto news, Web3, and digital asset development keeps readers engaged and well-informed.
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