Ethereum’s price is still struggling to find direction as profit-taking and weak sentiment in the crypto industry continue. Still, fundamentals like rising spot ETH ETF inflows and negative exchange net flows and technicals like the MVRV indicator point to a potential rebound by January 1.
Bullish Catalysts For Ethereum Price
There are several reasons why Ethereum price will likely rebound by at least 20% in the next few days before the year ends.
Spot Ethereum ETFs are seeing more investor interest.
Data shows that crypto exchanges are seeing Ethereum outflows.
Q1 is Ethereum’s best quarter of the year.
Ether’s MVRV ratio has dropped to 1.8%.
Ether has strong technicals.
1. Spot Ethereum ETFs Are Seeing Inflows
Data by SoSoValue shows that spot Ethereum ETFs added over $130 million in assets on Monday, even as the coin retreated. These inflows partially helped offset the outflows experienced in the previous two days. Monday’s inflows brought the total inflows to over $2.46 billion, bringing the total assets to $12 billion.
2. ETH Exchange Outflows Are Rising
Data by IntoTheBlock shows that outflows from exchanges are rising, a sign that investors are accumulating the coin. The number shows that the aggregated exchange netflow dropped to 49,6k ETH, the lowest level since December 19. More accumulation could support Ethereum price recovery.
Ethereum Exchange Netflow
3. Q1 Is Ethereum’s Best Quarter
The other reason why the ETH price may rebound is that the first quarter is usually its best period of the year. ETH rose by 60% in Q1 of this year after soaring by 52% in the same period in 2023. Its average performance in Q1 in the last eight years was 92.75%. Therefore, there is a likelihood that the coin will rise in this anticipation.
ETH quarterly performance
4. ETH Price MVRV Indicator Is At 1.54%
Meanwhile, the popular Market Value to Realized Value (MVRV) indicator has dropped to 1.54. This indicator looks at an asset’s market value and compares it with the realized value. Ideally, an asset is said to be overvalued when it moves above 3.8. Therefore, with ETH’s value being at 1.54, it is a sign that the coin is still undervalued.
Ethereum MVRV Indicator
5. Ethereum Price Technicals Suggest a 20% Surge Is Possible
The weekly chart shows that the ETH price retreated after facing strong resistance at about $4,000, which is about 20% above the current level. Ether has remained above the 50-week moving average and the ascending trendline that connects the lowest levels since June 2022. This performance means that bulls remain in control for now.
Therefore, there are odds that the coin will rise and retest $4,080, which coincides with the overshoot level of the Murrey Math Lines (MML) and the third resistance of the Woodie pivot point. A move above that level could see ETH price hit $5,000 as we predicted.
Ethereum price chart
The bullish view will become invalid if the ETH price drops below the top of the trading range of the MML and the first Woodie support at $2,812. Such a drop may see it crash to the ascending trendline at $2,500.
The post 5 Reasons Ethereum Price Can Jump 20% By Jan. 1 appeared first on CoinGape.