Ethereum Price Forecast & Predictions

Ethereum (ETH) continues to hover above the key $2,400 support this week after bouncing off the 200-day exponential moving average (EMA) during the week.

This bull market remains intact amid this latest price action, despite the strong selling spree we have seen lately. The magnitude of the selling is reflected by net inflows to exchange-traded funds (ETFs), as investors have withdrawn money from these vehicles in 13 out of the last 14 trading sessions.

Net outflows are already nearing the $1 billion mark, marking a strong shift in sentiment compared to the $832 million in positive inflows that these funds took in last month.

Despite these headwinds, we still envision ETH rallying back to $2,800, as long as this key support, the $2.4K demand zone, and the 200-day EMA holds.

This is a light week when it comes to economic data. Hence, we expect that the market’s supply and demand dynamics will dominate the price action, which may result in lower volatility compared to last week.

Will Ethereum (ETH) Go Up This Year?

Our bullish signals for Ethereum remain intact, as the MVRV Ratio, an on-chain metric we have been tracking for months, continues to sit near the zero line. This seems like the typical “early cycle” behavior, where the selling pressure at higher price zones is still strong enough to prompt dramatic pullbacks.

However, if the price stays above $2,400, we should see a steady recovery in the next few days toward the $2,800 resistance. The key level to watch in the mid-term would be $3,000, as this price zone has marked the beginning of bull and bear markets many times in the past whenever it is crossed.

We still need to see sentiment pick up in the next couple of weeks. The Federal Reserve’s meeting by the end of this month is not expected to change much when it comes to the macroeconomic backdrop, as the market expects no changes to the federal funds rate.

In the absence of negative catalysts, and considering the fact that ETH is currently sitting near its key support levels, we expect that a recovery may start this week.

What Would Change the View?

A drop below the $2,300 level could invalidate our bullish thesis, especially if that breakout is caused by negative developments on the macroeconomic front or an escalation in the conflicts in Europe or the Middle East.

The situation in Iran remains tense, and that continues to be a wild card that could derail the market’s recovery if the U.S.’s bombings resume and oil prices rise beyond $100. Meanwhile, further retaliations from the regime could also spark deeper corrections across the financial markets that could push ETH back to $2,000 or lower in the near term.