Ethereum Price Rally Observes Downtrend But Likely to Revert Back: Polymarket Analysis
The Ethereum cryptocurrency, popularly known as ETH, has observed a slowing down in its price rally over the last fortnight. However, as per the assessments made by Polymarket traders and supporting technical details, ETH is likely to experience an upswing in price over the succeeding weeks.
Current Trade and Predictions for 2025
On the last known trading day, Saturday, Ethereum was traded at a price of $2,550. Although this price was a few units below the month’s high of $2,735, it marked a noticeable run, soaring by 85% from its lowest level during the ongoing year.
A majority of traders at Polymarket, a popular prediction market platform, hold the belief that Ethereum will rise significantly in the coming years and might hit a price tag of $4,000 by 2025. A recent poll released suggested there has been an increased confidence among traders with regards to Ethereum prices soaring, with the odds now at 40%, up from the meager 16% from the previous month. This represents the highest confidence level seen since the beginning of March. The projected rise to $4,000 indicates an impressive surge of 60% from the current price level of Ethereum.
Polymarket traders also predict the possibility of Ethereum hitting $5,000, with the odds placed at 25%. The probability of Ethereum reaching $6,000 is estimated at 17%, respectively. The potential for Ethereum prices crashing to $1,000 has decreased notably, now standing at 16%.
Improves Ethereum’s Fundamentals
There have been favorable indicators pointing towards the improvement of Ethereum’s fundamentals over recent weeks. As per data released by Nansen, a renowned blockchain data and intelligence provider, the number of transactions occurring on the Ethereum network has escalated by 35% in merely the last month, increasing to 39 million. The active addresses have also observed a growth of 0.4%, reaching a sum of 6.7 million.
Additionally, Ethereum exchange-traded funds (ETFs) in the spot market have been experiencing a boom in inflows during the last week. The past week observed an addition of $238 million in assets to the total Ethereum ETFs pool, thereby escalating the cumulative total to an astounding figure of $2.76 billion. In terms of asset holdings, BlackRock’s ETHA leads the race with $3.4 billion, followed by Grayscale’s ETHE and ETH with holdings valued at $2.9 billion and $1.28 billion, respectively.
Ethereum Price – Technical Analysis
Technicals point to more ETH price gains in the coming months. It formed a golden cross as the 50-day and 200-day Arnaud Legoux Moving Averages crossed each other earlier this month.
Ethereum is also forming a bullish flag pattern on the daily chart. The flagpole started earlier this month and peaked at $2,736, the 50% Fibonacci Retracement level. The recent consolidation is part of the flag formation.
This indicates a high possibility for Ethereum to rebound or regain its price increase pace in the coming days or weeks. Elevating above the 50% retracement level at $2,736 indicates increased gains, potentially reaching the 61.8% retracement point at $3,052. If ETH’s price trajectory surpasses this retracement, it signals a possible higher surge up to $4,000.
These predictions suggest an optimistic outlook for Ethereum, supporting the possibility of a promising and valuable future for the cryptocurrency market.
