Ethereum (ETH) is getting ready to make a significant impact in the institutional finance industry with its new project, Etheralize. Positioned as the marketing and product development division of the Ethereum ecosystem, Etheralize aims to establish Ethereum as a major player on Wall Street. The involvement of the Ethereum Foundation and Vitalik Buterin in this venture has raised hopes that Ethereum can become a leader in the global finance sector. Furthermore, the recent surge in spot Ethereum ETFs in the United States has led to increased price activity for ETH.
Spot Ethereum ETFs have attracted over $70 million in investments on their last trading day, January 22. This influx, coupled with six consecutive days of gains, indicates growing interest in ETH among investors. However, current market data suggests that the price of ETH may experience a decline and could possibly reach the demand zone around $3,000. Investors are eagerly waiting to see if the price can surpass $4,200 after this pullback, which could potentially trigger a significant altcoin season.
The analysis of Ethereum’s price movement on a monthly basis reveals that both bulls and bears have a significant influence. Daily data suggests the possibility of a new upward trend, but the declining trading volume may hinder the sustainability of this rally. If the market volume fails to support the trend, ETH might continue to consolidate below $3,400.
For new highs to be achieved, bulls need to regain strength and push the price of ETH above the critical resistance level of $3,500. The ongoing downward trend in trading volume complicates the likelihood of this recovery. The Relative Strength Index (RSI) on Ethereum’s monthly chart has never dropped below the 40 level in history, providing strong support during current declines. However, bolstering bullish strength and reducing bearish influence will be crucial for the upward trajectory of ETH.
With the potential for ETH to surpass the $4,000 mark in the first quarter of 2025, a stable increase in price may become achievable. However, it is essential to strengthen the bullish sentiment and diminish the impact of bears to ensure this upward trajectory.