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Ethereum (ETH) has witnessed an impressive rally, recording its highest three-day return for 2024. The altcoin surged 21% following the announcement of Donald Trump as the President-elect of the United States, pushing its price above the critical resistance of $2,800. This breakout signals the end of a prolonged consolidation phase that lasted nearly 96 days and has ignited optimism for a new bullish leg, echoing a familiar trend seen in 2023.
In fact, Ethereum’s current price action reflects a bullish setup remarkably similar to its 2023 performance. Last year, the cryptocurrency experienced a prolonged downtrend from Q2 through Q4 before settling into an accumulation phase in Q3.
This was followed by a breakout that broke through the descending resistance line, igniting a major rally. By the end of Q1 2024, ETH had surged by 129%, peaking at $4,100.
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Institutions Eye Ethereum ETFs
This time, Ethereum is repeating a similar pattern, having broken out of its latest accumulation range and closed above key exponential moving averages (50-day, 100-day, and 200-day), indicating strong bullish sentiment.
The recent rally has also revived institutional interest in Ethereum, as the cryptocurrency’s ETF market saw $132 million in inflows over November 6-7. This surge in institutional buying marks a stark contrast from recent weeks, which had shown net outflows of $63.2 million just days before. Data from Farside reveals that investors are returning to Ethereum, potentially viewing it as an asset with renewed long-term potential amid favorable market conditions and rising global adoption.
Future Price Outlook
This shift in institutional interest is complemented by Ethereum’s increasingly scarce supply. According to venture capitalist Henrique Centieiro, Ethereum is entering “scarcity mode,” fueled by high demand and supply constraints. Over 42.6% of ETH is now locked in staking contracts, while exchange reserves are at historically low levels for 2024, reinforcing the narrative of an impending supply squeeze.
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If Ethereum continues to follow its 2023 trajectory, analysts predict a potential price range of $6,000 to $6,500 by Q1 2025. The recent alignment of bullish indicators and renewed institutional confidence appear to set Ethereum on a promising path. Long-term holders and institutional investors alike are watching this space closely as Ethereum inches closer to potential record highs.
