Ethereum appears poised for a price increase, with traders on Polymarket speculating it will reach $4,000."
Ethereum was trading at $2,550 on Saturday, slightly below its monthly peak of $2,735, marking an 85% increase from its lowest point this year.
Future Price Predictions and Market Sentiment
Many Polymarket traders anticipate Ethereum (ETH) will reach $4,000 by 2025. The likelihood of this has increased significantly, from 16% last month to 40%, its highest since March 1. This would represent a 60% surge from its current price. Polymarket also indicates a 25% chance of ETH hitting $5,000 and a 17% chance of reaching $6,000, while the odds of it dropping to $1,000 have decreased to 16%.
Improving Fundamentals and ETF Inflows
Several indicators suggest strengthening fundamentals for Ethereum. Nansen data shows a 35% increase in network transactions over the last 30 days, totalling 39 million, and active addresses have slightly risen by 0.4% to 6.7 million. Additionally, spot Ethereum Exchange Traded Funds (ETFs) are attracting substantial investment, with over $238 million in inflows this week, bringing the total cumulative assets to $2.76 billion. Notable ETFs include BlackRock’s ETHA with $3.4 billion, Grayscale’s ETHE with $2.9 billion, and ETH with $1.28 billion.
Technical Analysis and Potential Gains
Technical analysis points to further price increases for ETH. A golden cross formed earlier this month as the 50-day and 200-day Arnaud Legoux Moving Averages intersected. Ethereum is also forming a bullish flag pattern on the daily chart, with a flagpole that began earlier this month and peaked at $2,736, which is the 50% Fibonacci Retracement level. The recent price consolidation is part of this flag formation.
This suggests a potential rebound in the near future. A break above the 50% retracement level of $2,736 could lead to further gains, possibly reaching the 61.8% retracement point at $3,052, and potentially even $4,000.
