- Summary:
- Ethereum price has had periods of sparkle but failed to rally each time. Will it happen this time as it targets retesting $3,500?
Ethereum price returned to the upside on Friday, riding on a broader market upturn to gain 3.7% and trade at $3,429 at the time of writing. On a day when market leader Bitcoin stayed above the $100k for the third successive day, Ethereum price momentum picked up, with the coin’s traded volume rising.
Away from the retail market, Ethereum also performed strongly in the spot ETF market. Spot Ethereum ETF inflows were at $166.6 million on Thursday, with the top three consisting of BlackRock, Fidelity and Grayscale Mini.
Ethereum’s upsurge is also accompanied by a strong performance in the DeFi market. According to DeFiLlama, Ethereum chain’s DeFi TVL (Total Value Locked) rose by $1.5 billion to $68 billion in the last 24 hours. That means more utility for ETH coins, and an extension of the trend will propel the price higher.
The selling pressure on Ethereum is also relatively low, as 15% of the token’s holders are in “Out of the Money” positions. The vast majority of holders (78%) are “In the Money” and are likely to hold on for more profit in the coming days.
Ethereum’s Sentiment Struggles
The downside to Ethereum price momentum is that it has been largely lethargic since the Trump-fueled crypto rally started in November 2024. Particularly, it has struggled to hold above $4,000, and has only touched that mark for a combined five days. That has resulted in a weak sentiment that could limit its upside in the near term.
Ethereum Price Prediction
The pivot mark for Ethereum price is around $3,405 and the momentum indicator favours the upside. Immediate resistance is likely to be at $3,450, but a continuation of the momentum will clear that barrier and potentially test $3,500.
On the downside, ETH price will favour the sellers if it breaks below $3,405. If that happens, it will likely find the first support at $3,360. However, an extended control by the sellers will break below that level and invalidate the upside narrative. Also, the momentum could send ETH lower to test $3,330.
