Ethereum price rose by 1.5% today and moved slightly above the important resistance level at $3,000. While the coin remains in a bear market, some popular analysts believe that it has more upside in the near term as BitMine and long-term holders start buying.
Crypto Analyst Predicts that Ethereum Price May Hit $4,000 Soon
In an X post, Cas Abbe, a popular crypto analyst, predicted that the Ethereum price will soon jump to $4,000, a 35% upside from the current level. He pointed to its technicals on the daily chart, which show that the coin remains above the ascending trendline that links the lowest swings in June, November, and December this year.
That trendline has held steady since May, meaning that the coin may resume the uptrend in the near term. At the same time, as the chart below shows, the coin has formed a bullish divergence pattern.
A bullish divergence forms when an asset is in a downtrend. It is characterized by oscillators like the Relative Strength Index (RSI) and the MACD making a series of higher lows and lower highs. In this case, the MACD has jumped and is about to flip the zero line, while the RSI is about to move above the neutral point at 50.
The risk, however, is when the coin falls below the ascending trendline. Such a move will confirm the bearish outlook and invalidate the bullish ETH price forecast, and point to more downside. More downside may push the coin to the next psychological point at $2,500.
BitMine and Long-Term Holder Accumulation Continues
One potential catalyst is that BitMine continues to accumulate and stake its coins, a sign that Tom Lee believes that the coin will bounce back eventually. Indeed, in an interview this week, he predicted that the coin will bounce back and hit over $7,000 in 2026.
Lee believes that Ethereum is an important chain that will continue gaining market share in the fast-growing real-world asset tokenization, which will have trillions in assets in the next decade.
BitMine has accumulated over 384,000 coins in the last 30 days, bringing its total holdings to over 4.1 million, which are now worth $12.2 billion. This growth makes it the biggest Ethereum holder in the industry, with SharpLink, following with 859,853 coins.
More data shows that long-term Ethereum holders have continued to accumulate Ethereum in the past few days. Addresses holding over 1,000 coins now control 70% of the supply, after they accumulated 120,000 coins since December 26. That is a sign that smart money investors are starting to buy, which may lead to more gains.
Ethereum price will also benefit as the ETH ETF outflows start fading. Data shows that these ETFs have had $58 million worth of inflows this week. These funds shed $102 million last week, a big improvement from the premium month’s $643 million.