Ethereum Targets $3,000 and Can it be Achieved by 2025?

Ethereum Eyes $3,000: Can It Break Resistance Before 2025?

Ethereum Targets $3,000 and Can it be Achieved by 2025?

Ethereum has been experiencing significant volatility, fluctuating within a key trading range. It has tested crucial support around $2,600 while encountering strong resistance near $2,800. After declining over 35% from its December peak, ETH is sending mixed signals, leaving traders uncertain whether a breakout toward $3,000-$3,500 is approaching or if further downside is likely.

During the past few months, Ethereum gained significantly as its price surged past $3,000. For a long time, that level acted as a strong psychological barrier to Ether’s upward price movement. Right now, traders are not sure whether or not to regard $3,000 as a significant resistance level. 

The Ethereum investors are keeping an eye on the asset to determine if its price rally is sustainable. After breaking above the $3,000 psychological resistance level ETH’s next price prediction should be $3,500. That is the level that many traders expect the asset price to reach. If it rises above that key level the coin may gather much more momentum than before. 

Several factors are behind its recent spike. These include innovative ideas from Vitalik Buterin, its co-founder, and the spike in spot Ethereum ETF inflows. The rise in ETF inflows indicates an increase in institutional demand for the asset.  As a fact, ETH ETFs recorded their highest weekly inflow, an indication of a rise in institutional interest in the asset. The asset recorded over $154 million inflow during the previous week. That uptick started soon after Donald Trump’s victory in the United States presidential elections. The main reason for the increase in ETH price and inflow in the ETF sector is the hope that the new administration may introduce crypto-friendly regulations. 

Since 6 November ETH ETFs had three days of positive funds inflow. In fact, during that period the sector attracted over $217 million. For example, on 8 November alone the sector had a positive inflow of $85.86 million. Apart from the ETFs, ETH continues to dominate in the tokenized real-world assets (RWA) sector. Recently, there was a surge in the tokenized U.S. Treasuries on the Ethereum network, which attained an all-time high of more than  $2.33 billion. That achievement shows the continued relevance of the Ethereum blockchain. Therefore, the trend in the real-world asset tokenization sector has increased optimism in the network. Therefore, it remains a key player in the decentralized finance sphere. 

Ethereum whales appear to be accumulating large amounts of ETH, signaling potential bullish sentiment in the market. Recently, a wallet address (0xb99a2c4C1C4F1fc27150681B740396F6CE1cBcF5) withdrew 56,909 ETH, worth approximately $151.6 million, from Binance just four hours ago. Additionally, another major entity (0xEd0C6079229E2d407672a117c22b62064f4a4312) has moved 64,603 ETH, valued at around $171.8 million, from Binance and Bitfinex over the past 48 hours. Such large-scale withdrawals typically indicate strong accumulation, as reducing exchange reserves suggests that these investors are preparing to hold rather than sell, potentially setting the stage for a bullish breakout.

Also, the current Ethereum bullish momentum is a result of the shift in market sentiment. The change in sentiment has led to a rise in activity on the network. As we have noted, Ethereum has been consolidating within the last two weeks resulting in the recent breakout.  At the time of writing,  ETH is trading at $2,710 ETH/USDT on Gate.io. Notably, its price dropped by 3.12% within the last 24 hours. 

ETH Daily Price Chart - Gate.io

Source: TradingView

As you note in the above graph, ETH is showing a slightly uptrend. Significantly, the asset is just 44% below its all-time high of $4,891.70, attained on 16 November 2021. Thus, the market hopes that ETH may reach a new ATH during the current season. If the bullish momentum continues the asset may stabilize around the $3,000 significant support level. 

Generally, November has always been a good month for cryptocurrencies and this year seems no different. However, some analysts have flagged ETH’s MVRV ratio which stands at 5.6%, its highest point since May. This high ratio may prompt the investors to make a profit which could lead to a correction. There is much optimism in the market though. Ethereum's strong rally during the previous week made it one of the best performers among the major cryptocurrencies. With a market capitalization of over $2.5 trillion, the asset has a dominance of 14% in the market

Ether Price Forecast in 2025

At the moment, the market aims to see ETH may break above $3,000 ETH/USDT during the current season. This is because many technical indicators show that it is in a strong up trend. For instance, it is currently priced above its 50-day and 200-day exponential moving averages (EMAs). Similarly, a double bottom pattern is developing on its weekly price chart. Usually, this is a strong bullish signal since it indicates renewed buyer interest. Looking at how things are going the buyers may challenge its recent ATH of $4,864. If that happens that may be a confirmation of a bull run.