TLDR
- Ethereum has broken above $4,000 again, showing a 30% increase in the past month and 80.5% increase since December 2023
- Bitcoin’s new all-time high of $107,822 on December 16, 2024 appears to be driving ETH’s upward momentum
- Trump’s pro-crypto stance and upcoming inauguration add to positive market sentiment
- ETH is currently 17.8% below its November 2021 high of $4,878.26
- CoinCodex predicts that ETH will reach a new high of $5,094.65 by February 21, 2025, representing a potential increase of 26.69%
Ethereum (ETH) has reached another milestone in its price journey, breaking through $4,000 barrier amid strong market conditions and growing investor confidence. The second-largest cryptocurrency by market capitalization has shown remarkable resilience, with gains of 1.4% in daily trading and an impressive 30% increase over the past month.
The digital asset’s recent performance reflects broader market strength, with particularly notable gains across time frames. The weekly chart shows a rise of 8.1%, while the 14-day period shows an upward movement of 10.1%. Perhaps most striking is the year-over-year comparison, with ETH notching an 80.5% increase since December 2023.
Technical analysis reveals a bullish trend line forming with support at $3,940 on the hourly chart. Price action shows ETH trading above both the $4,000 psychological level and the 100-hour Simple Moving Average, which indicates a strong buyer presence in the market.
The current rally appears to be closely linked to Bitcoin’s recent performance, with BTC reaching a new all-time high of $107,822 on December 16, 2024. As the market leader, Bitcoin’s price movements often set the tone for the entire cryptocurrency market, and Ethereum has historically shown strong correlation with BTC’s upside trends.
Trading data indicates that Ethereum faces immediate resistance near the $4,070 level, corresponding to the 76.4% Fibonacci retracement level of the recent downward move from $4,107 to $3,946. A break above this level could open the way to testing higher resistance points.
The next major resistance level lies at $4,120, followed by potential targets at $4,250 and $4,350. Market observers note that a clearing of these levels could potentially push ETH towards the $4,500 mark in the near term.
Support levels have established at key points, with initial support near $3,980 and a stronger base at $3,940. These levels provide important price floors that could help sustain the current upward momentum.
The upcoming political transition seems to play a role in market sentiment. Donald Trump’s planned inauguration on January 20, 2025 has sparked optimism among crypto investors, given his administration’s pro-cryptocurrency stance.
New appointments, including a new SEC chairman and White House crypto czar, have further boosted market confidence. These regulatory developments suggest a potentially more favorable environment for cryptocurrency adoption and growth.
Historical context shows that Ethereum is still trading below its all-time high of $4,878.26, recorded in November 2021. The current price represents a 17.8% gap from this peak, suggesting scope for further upside moves.
Technical indicators show a positive outlook, with the hourly MACD gaining momentum in the bullish zone and the RSI holding above the 50 mark. These metrics usually indicate continued upward pressure on the price.
CoinCodex analysis projects bullish targets for ETH, predicting a new all-time high of $5,094.65 by February 21, 2025. This forecast represents a potential upside of 26.69% from current levels.
The hourly chart patterns show that ETH is maintaining stability above key moving averages, with steady buying pressure evident in recent trading sessions. Volume indicators suggest growing market participation as prices increase.
Trading activity has increased significantly across major exchanges, indicating broader market engagement with ETH’s upward movement. This increased activity often precedes sustained price trends.
All pullbacks have found reliable support, with buyers stepping into previously established support zones. This pattern of higher lows supports the overall bullish market structure.
Recent price action shows ETH successfully holding above the $4,000 level despite occasional tests of lower support. The ability to maintain this price level indicates a strong buyer conviction at current levels.
The latest data shows ETH trading at $4,020, with 24-hour trading volume reaching significant levels across major cryptocurrency exchanges.
