ETH at $5,000 still on the menu for 2024: Analyst

TL;DR

• Despite a recent price drop, analysts expect ethereum to reach $5,000 by the end of 2024, buoyed by strong support at $3,500.
• Key metrics like a low RSI and higher self-custody moves suggest a possible rally for eth.

New ATH incoming?

ethereum (eth), Like many other leading cryptocurrencies, it experienced a sharp correction in early June, interrupting its bullish trajectory. Currently, she is trading at just over $3,500 (according to data from CoinGecko), which represents a drop of 7% on a two-week scale.

However, some industry participants remain optimistic about its future, speculating that a new all-time high price could be reached before the end of 2024. An example is user x Jelle, who reclaimed that eth has “successfully converted” the $3.5K mark into support. Based on this, the analyst expects a rally towards the coveted $5,000 level sometime this year.

<blockquote class="twitter-tweet”>

twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth Successfully converted $3,500 into support!

Very few people are prepared for this to hit new all-time highs, but $5,000 eth is on the menu this year.

Let's roll. pic.twitter.com/k438SvCX2o

– Jelle (@CryptoJelleNL) twitter.com/CryptoJelleNL/status/1802592128033341653?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>June 17, 2024

Ali Martinez x.com/ali_charts/status/1802110427825897808″ target=”_blank” rel=”noopener” data-wpel-link=”external”>chipped in, too, claiming that whales have purchased over 700,000 eth in the last three weeks, which is equivalent to a staggering $2.48 billion (at the current rate). Such a move reduces the available supply of ethereum on exchanges and could lead to a price rally (assuming demand stays the same or increases).

Another analyst who recently predicted a bright future for the second-largest cryptocurrency in terms of market capitalization is Wolf. User argument which has been in bullish mode since the beginning of the year. They predicted increased volatility in the coming months and an eventual bull run as high as $5,000 by the end of the third quarter of 2024.

What are signaling indicators?

Important on-chain metrics such as the Relative Strength Index (RSI) and eth Net Exchange Flow also suggest that the asset's valuation could take off soon.

He eth” data-wpel-link=”external” target=”_blank”>RSIa technical analysis tool that measures the change and speed of price movements, has not fallen below a ratio of 70 since May 23. Any value above that level indicates that eth is overbought and could be headed for correction.

For its part, ethereum currency inflows have increased significantly. eth/chart/exchange-flows/exchange-netflow-total?exchange=spot_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=column” target=”_blank” rel=”noopener” data-wpel-link=”external”>overcome entries in the last month (for most days). The shift from centralized entities to self-custody methods is seen as optimistic as it reduces immediate selling pressure.

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