Ethereum Bullish Breakout: Is it Possible to Reach $4,000 in Q1 2025?

Will Ethereum's continued breakout lead to a rebound above $3,400 and extend the rebound beyond the $3,568 supply area? With Bitcoin returning to the $96,000 level, Ethereum is also experiencing a recovery growth.

After a breakout rebound on the 4-hour chart, Ethereum's bullish momentum is strengthening. Will this breakout allow Ethereum to surpass the $3,500 supply area? Let's take a look.

ETH Price Analysis

On the 4-hour chart, Ethereum's price trend shows that the triangle breakout rebound momentum is strengthening. Following a series of six consecutive bullish candles, Ethereum rebounded by 3.17% from the local trend support line.

After breaking the local resistance line, the bullish trend broke above the 20 and 50 moving averages. With prices rising by 0.70% in the past 4 hours, an upward trend has emerged.

Ethereum's price has surpassed the short-term resistance level of $3,415, as well as dynamic resistance and trend lines. The bullish recovery is supported by the 4-hour RSI line, which has reached 60.32.

Heading towards the overbought zone, momentum indicators show increasing buying pressure. Additionally, the likelihood of a bullish crossover between the 20 and 50 EMA lines has significantly increased, potentially indicating buying opportunities.

Ethereum ETF Slightly Rebounds

Ethereum ETF flows have improved during the recovery. On December 31, the U.S. spot Ethereum ETF saw a daily net inflow of $35.93 million.

Fidelity led the upward trend with an inflow of $31.77 million, followed by Grayscale's Mini Ethereum Trust with a cumulative inflow of $9.77 million, although Grayscale's ETH ETF experienced an outflow of $5.61 million.

Ethereum's Target Based on recent price trends, a sustained recovery will challenge the supply area around $3,568. While dynamic moving averages provide strong resistance near $3,457 and $3,481, breaking above $3,500 will determine the future direction of Ethereum's price.

Specifically, a bullish closing price above $3,568 will increase the chances of Ethereum returning to $4,000 in Q1 2025. However, failing to close above $3,568 may lead to the continuation of a sideways trend and increase the likelihood of breaking below the psychological level of $3,000.