With Donald Trump’s inauguration hours away, Ethereum price is showing strength after rallying -1.51% today. In addition to the aforementioned event, multiple outlooks suggest that ETH will soon witness an up-only rally. One on-chain metric shows that the price could skyrocket soon and hit $7,000 in an act of reversing to the mean.
Why Ethereum Price Could Skyrocket From $3,353.1 to $7,000 soon
Ethereum price today hit a daily high of $3,439.8 after -1.51% move on January 20. Currently ETH auctions at $3,353.1 as of 4 PM.
*Ethereum price updated as of 4 PM.
Many investors are looking down on ETH and even losing hope as it remains undisturbed and below $4,000, while other altcoins are going parabolic and registering impressive gains. However, the lackluster performance streak that spanned all through 2024 is unlikely to last in 2025 for a few reasons. In fact, Glassnode’s Ethereum MVRV pricing bands indicator hints that there could be repricing that propels ETH’s value to roughly $7,000.
The indicator shows that the price trades above the 3.2 MVRV band at roughly $7,000, the value of this is 3.2 times the realized price (RP). While every other altcoin has shot up, ETH continues to trade below the 2.4 MVRV band indicating how undervalued the crypto is.
The efficient market hypothesis states that assets or markets are unlikely to remain underpriced long. Hence, Ethereum price forecast adds that a repricing event could send ETH to $7,000.
Whales Continue to Accumulate
Ethereum whales have bought 300,000 ETH in just 20 days. This uptrend in their holdings since the start of 2025 shows their confidence despite the boring price performance witnessed through 2024 and in the first few days of the new year. This outlook hints at a bright future ahead for Ethereum and its ecosystem for the rest of 2025.
Etheruem Foundations Sells Again: Short-term Outlook Bearish?
According to on-chain data, the Ethereum Foundation has started selling ETH again. This is a pattern where the entity behind the second largest crypto sells large quantities of ether in batches of 100 tokens. This development takes place as Bitcoin hits a new ATH, so it is unlikely this move could dampen the buying pressure due to capital rotation from meme coins to top altcoins.
Ethereum Price Analysis Hints Buying Opportunity Around the Corner
Ethereum price is setting up a falling wedge, a bullish pattern. However, the recent uptick in bitcoin has prevented ETH from sliding into the $3,057 to $3,132 support zone. Regardless, investors need to keep a close eye on this area. A dip into this area presents a good buying opportunity before ETH skyrockets.
With whales accumulating large quantities of ETH and Trump’s inauguration, Ethereum price could scale higher along with altcoins during the highly anticipated alt season.
Another outlook could see the price breaking out of the falling wedge before dipping lower. In such a case, a decisive daily candlestick close above $3,592 will confirm a breakout. The setup forecasts a 17% move to $4,000, obtained by adding the distance between the first swing high and swing low to the breakout point.
Ethereum price is poised for a significant surge, potentially reaching $7,000, driven by a combination of factors, including Donald Trump’s inauguration, whale accumulation, and a bullish falling wedge pattern.
Frequently Asked Questions (FAQs)
A combination of factors, including Donald Trump’s inauguration, whale accumulation, and a bullish falling wedge pattern.
According to some predictions, Ethereum’s price could reach $7,000.
Yes, according to some analysts, a dip into the $3,057 to $3,132 support zone presents a good buying opportunity before ETH potentially skyrockets.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/heres-why-ethereum-price-could-suddenly-skyrocket-to-7000/
✓ Share: