Ethereum (ETH) has made a strong move on January 24, with its price increasing by 7.5% over the past few days. The price reached an intraday high of $3,421, recovering above its 100-day Simple Moving Average (SMA), which it had fallen below just a week prior. As ETH climbs, analysts are optimistic about its potential for continued growth, citing several key factors driving this upward momentum.

Marketwide Recovery Lifts Ethereum

Ethereum’s recent price increase is part of a broader trend of recovery across the cryptocurrency market. Bitcoin (BTC), the leading cryptocurrency, saw a 2.6% increase in the last 24 hours, pushing its price above $105,000. Altcoins such as XRP and Solana also posted gains of 1% and 6%, respectively.

This recovery comes on the back of general positive sentiment in the cryptocurrency space, with many investors buoyed by the recent executive order issued by U.S. President Donald Trump. On January 23, Trump signed an executive order aimed at strengthening American leadership in digital financial technologies. This order recognizes the crucial role of digital assets like Bitcoin and Ethereum in innovation and economic development.

The executive order includes the creation of a working group to explore new digital asset regulations and establish a potential national “digital asset stockpile.” The order also marks the repeal of SAB 121, a controversial crypto accounting rule that had previously required financial institutions to treat crypto holdings as liabilities. This regulatory shift has been interpreted by the market as a sign of growing government support for cryptocurrencies, which has further fueled Ethereum’s rise.

Boost in ETF Inflows Driving Ethereum Price

Another major catalyst for Ethereum’s price surge is the significant inflows into Ethereum exchange-traded funds (ETFs). Over the past few weeks, U.S.-based spot Ethereum ETFs have seen a consistent increase in capital, with $396.5 million in inflows recorded over six consecutive days. BlackRock’s ETHA fund, in particular, has been a key player, receiving $287.7 million in inflows between January 13 and January 23.

These strong ETF inflows are helping to drive Ethereum’s bullish momentum, as institutional interest in ETH continues to grow. Market analysts are optimistic that the Ethereum ETF landscape will expand further in the coming years, especially if regulatory changes allow for the inclusion of staking rewards in these investment products.

Technical Outlook for Ethereum

From a technical perspective, Ethereum is currently trading above a strong support zone between $3,200 and $3,390. This range has been critical for both buyers and sellers, with around 4.09 million ETH previously bought by 5.73 million addresses in this area. Data from IntoTheBlock suggests that the immediate support around $3,340 is particularly important, as it marks the point where the most significant concentration of buy orders exists.

If Ethereum can maintain its price above this support level, it may continue its upward trajectory. The next key resistance to watch is the 50-day SMA at $3,502, followed by a higher target around $4,109, which represents the December 16, 2024, range high.

However, if sellers manage to push Ethereum’s price below the support zone, the next major support levels are at the 100-day SMA around $3,260, followed by the psychological level of $3,000 and the 200-day SMA at $2,986.

ETH Price Predictions

Market analysts are increasingly optimistic about Ethereum’s price prospects in the near term. Predictions suggest that Ethereum could reach as high as $7,000 in the first quarter of 2025, driven by Trump’s crypto-friendly policies and continued growth in the Ethereum ecosystem. Some analysts even expect Ethereum to break out from its current bullish pattern, with potential price targets of $3,850 and $4,840.

Conclusion: Ethereum’s Future Looks Bright

With strong market sentiment, rising institutional interest through ETFs, and a supportive regulatory environment in the U.S., Ethereum’s future looks promising. The current price surge, along with the bullish outlook for the next few months, suggests that Ether has the potential to reach new highs in 2025. Investors and analysts alike are closely monitoring key technical levels and developments in the crypto space, which could further fuel Ethereum’s upward momentum.

As Ethereum continues to gain traction, the cryptocurrency market as a whole is likely to benefit, and investors will be watching for signs that ETH can maintain its momentum and break through key resistance levels.

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