Can Ethereum Reach $4,000 By Year-End? Experts Weigh In

Ethereum (ETH) is stirring excitement among investors, with recent price gains and a potential bullish breakout on the horizon. The world’s second-largest cryptocurrency by market cap has climbed over 2% in the last week, with a surge of more than 3% in the last 24 hours.

At the time of writing, ETH sits comfortably at $3,488.88, boasting a market capitalization exceeding $419 billion. This positive movement has significantly reduced investor losses, with IntoTheBlock data indicating only 10% of ETH holders currently underwater.

Analysts are particularly intrigued by a bullish falling wedge pattern identified on ETH‘s chart by popular crypto analyst World of Charts. This pattern, characterized by converging price channels, often precedes a breakout. Since May, ETH’s price has consolidated within this pattern, and a breakout now could propel the token to new highs by year’s end.

However, a closer look at short-term metrics reveals mixed signals. While Santiment’s data suggests increased selling pressure with rising Exchange Inflow and Supply on Exchanges, indicating investor selling, there are positive signs too. Notably, whales, major investors, remain confident, as evidenced by the increasing ETH supply held by top addresses.

Further optimism comes from technical indicators like the MACD, hinting at a potential bullish crossover, and the RSI (Relative Strength Index) recovering towards a neutral position. The Chaikin Money Flow (CMF) also displays an upward trend, suggesting a high likelihood of a price increase.

Based on these indicators, a price target of $3,895 for ETH in the near future seems achievable. However, a bearish turn could see ETH fall to $2,877.

While the immediate future remains uncertain, the potential breakout from the bullish pattern and supportive technical indicators paint a promising picture for ETH in the long run. Investors are eagerly watching developments, with the possibility of Ethereum reaching new highs by the end of 2024 certainly a cause for excitement.