Ethereum price has risen for three consecutive weeks, helped by the ongoing recovery of cryptocurrencies. ETH, the second-biggest cryptocurrency, rose to $3,670 on Tuesday, as technicals and fundamentals pointed to more gains in the current quarter. So, how high can ETH get this year?
Polymarket users are bullish on Ethereum price
There are rising odds that the ETH price will continue doing well this year. A Polymarket poll with over $2 million shows that the odds of ETH reaching $4,500 on March 31 are at 55%. If that happens, it means that the ETH price will rise by over 23% from the current level.
Another Polymarket poll shows that the odds of the coin soaring to an all-time high by June have risen to 56%. The odds that the ETH price will get to $5,000 this year have risen to 65%.
Therefore, traders are optimistic that the coin will do well in the long term. This is notable since Polymarket has proven to be a highly accurate prediction market such as its prediction about the US presidential election when it predicted that Trump would win.
ETH price technicals point to a rebound
Meanwhile, Ethereum price has strong technicals, pointing to more gains in the long term. The weekly chart shows that the ETH has formed a symmetrical triangle chart pattern. The upper side of this triangle connects the highest swings since November 2021.
This triangle has more room to form, meaning another drop to the lower side cannot be ruled out. Besides, the coin has formed a triple-top chart pattern at $4,085. A triple-top is a popular bearish reversal pattern.
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The Ethereum price has remained above the 50-week and 100-week Exponential Moving Averages (EMA), which is a positive sign. It has moved slightly below the 23.6% Fibonacci Retracement level and formed a cup and handle pattern.
Therefore, ETH price will likely continue rising in the next few months. For this to happen, the coin will need to jump and cross the upper side of the triple-top pattern at $4,085. If this happens, the next level to watch will be the all-time high of $4,883. It will then surge to the key psychological point at $5,000 if it flips the ATH.
Key catalysts for Ethereum
The price of ETH has numerous catalysts that could increase it in the longer term. First, the first quarter is usually the best-performing one. It rose by 59% in Q1 ’24 and 52% in Q1 ’23. The average gains in Q1 are 83%, and the coin has only fallen two first quarters since 2017.
Second, spot Ethereum ETFs are doing well and seeing strong inflows, a sign of robust demand. All ETH ETFs have accumulated over $2.7 billion in inflows, bringing the combined assets to $13.47 billion. More inflows will continue in the next few months as demand rises.
Further, data shows that the volume of ETH in exchanges has remained under pressure. While the amount has risen in the past few days, it remains much lower than it was a few years ago. Falling volume is a sign that investors are holding the coin for longer.
Ethereum is also fairly cheap when you use the MVRV-Z score indicator. The market value to relative value z-score is an indicator that compares the MV and RV, and then standardizes it. A crypto is said to be cheap when the MVRV indicator is below 3.8. Ethereum’s figure is at 1.6, meaning that the coin has more upside to go.
Therefore, Ethereum has a combination of strong technicals and fundamentals that will likely push it higher for longer.
Read more: Ethereum price analysis: does ETH has more upside?
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