Ethereum Price Outlook: Technical Analysis Points to Potential Price Swings Amid Strong ETF Performance

Ethereum (ETH) finds itself at a critical juncture as we approach the end of 2024, with technical indicators suggesting possible volatility ahead while institutional interest continues to grow through ETF products.

Ethereum Price Outlook: Technical Analysis Points to Potential Price Swings Amid Strong ETF Performance

ETH/USD Technical Analysis

ETH/USD

 

Though it has since seen a downturn, ETH/USD lately hit $4,101, an annual high. With ETH trading below the pivotal $3,500 level and the 100-hourly Simple Moving Average, current technical study shows a bearish short-term trend. With resistance around $3,420, a notable bearish trend line suggests possible more downside should support levels fail.

Key support levels to monitor include $3,200 and $3,120; $3,000 is a fundamental psychological threshold. On the plus side, breaking above $3,420 might set off a movement toward $3,500 and maybe $3,650.

Ether ETF Institutional Adoption and Momentum

Ethereum’s institutional scene seems to be growingly solid. With seven straight weeks of net inflows—including an amazing $2.2 billion in late November— Ethereum-based ETFs have shown great performance. ETH ETFs drew $62.7 million in net inflows last week alone, therefore increasing the total net asset value to $1.215 billion.

With inflows of $143 million and $26.1 million respectively, BlackRock’s ETHA and Fidelity’s FESH have become front runners in attracting institutional capital. The recent approval of Hashdex’s Bitcoin and Ethereum crypto index ETF by the SEC strengthens this institutional curiosity even more.

NFT Market’s Positive Impact in the Ethereum Ecosystem

With weekly sales volumes approaching $201 million, representing 66% of total NFT sales, Ethereum’s NFT ecosystem shows ongoing strength. Notable collections proving ongoing demand for Ethereum-based digital assets include Pudgy Penguins ($54.4 million) and LilPudgys ($20 million).

Ethereum Price Predictions and Future Outlook

Long-term forecasts are bright even with present technological shortcomings. Driven by network expansion and expected yearly free cash flow of $66 billion, VanEck’s analysis indicates ETH might reach $6,000 by Q4 2025 and possibly touch $22,000 by 2030.

Additional potential catalyst could come from including staking yields into U.S.-based ETH ETFs, which already pay about 3.35% APR. Head of research Matt Hougan of Bitwise claims that Ethereum’s influence in AI agent operations could inspire more acceptance and value appreciation.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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