Recently, the Ethereum ($ETH ) price dipped below the $1,600 mark. However, this dip is setting the stage for a strong rally as token holders can buy ETH at lower prices in the hope of a rebound.
This crypto is also witnessing a spike in user activity and on-chain whale movement. Also, the long-term holders have entered capitulation territory for the first time in months. An analyst has predicted a $5,000 target for Ethereum.
ETH Price Prediction: $5K on the Horizon After Final Shakeout
Crypto analyst CryptoELITES has recently made a price prediction for Ethereum. The analyst is forecasting a $5,000 price target by May 2025.
This optimism is based on historical patterns where similar price consolidations led to explosive growth. Ethereum has rebounded multiple times near the $1,800 support, forming a strong foundation.
CryptoELITES also added that the ongoing decline is Ethereum's final shakeout before the price enters a parabolic expansion.
The chart splits the structure into a bottoming phase followed by projected upside momentum.
By identifying Ethereum's potential to transition into a new bullish phase, CryptoELITES highlighted a long-term opportunity despite short-term volatility.
Whale Activity and On-Chain Indicators Show Market Trends
Long-term holders are selling ETH at a loss, a sign that the market might be nearing its bottom. Ethereum LTH-NUPL indicator has dipped into capitulation.
This metric turning red signals the end of a bearish phase. It indicates that experienced holders are surrendering, often creating a setup for trend reversals.
Meanwhile, the MVRV Long/Short Difference has plunged to -22.26%, showing that the ETH price is significantly undervalued.
Large transactions have also intensified. Over 530,000 ETH was transferred between whale wallets last week, pointing to possible rebalancing.
Despite the price drop, Ethereum's network activity is increasing, with more daily active addresses and transactions. This indicates growing interest and adoption.
Final Words
Ethereum is facing short-term challenges. Experts believe it is laying the groundwork for a significant bullish phase. The combination of undervaluation, increased user activity, and strategic accumulation by whales supports this optimistic outlook.
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