U.S. investors have remained strongly interested in spot Bitcoin and Ethereum ETFs, with over $1 billion flowing into Ethereum ETFs alone last week. Furthermore, Ethereum liquid restaking protocols have seen their total value locked (TVL) increase by nearly 6,000% in 2024. So, where is Ether’s price headed next, and what can we expect for the rest of December 2024?
In this article, CryptoChipy will dive into Ether (ETH) price forecasts based on both technical and fundamental analysis. Keep in mind that various other factors should also be considered when entering a position, such as time horizon, willingness to take on risk, and available margin if trading with leverage.
Ethereum Liquid Restaking Total Value Locked (TVL) Soars in 2024
Since its launch in 2017, Ether has gained considerable traction, with Ethereum liquid restaking protocols seeing their TVL increase by almost 6,000% in 2024. Ethereum’s strong performance can be attributed to rising interest in decentralized finance (DeFi) and liquid restaking, where users stake their Ether to help secure decentralized networks, thereby driving demand for the token.
From January 1 to December 15, Ethereum’s liquid restaking TVL skyrocketed from $284 million to $17.26 billion, thanks to the utility provided by liquid restaking tokens (LRTs). These tokens simplify traditional staking, enabling more efficient capital deployment within DeFi. As more Ethereum is staked for liquid restaking, demand for ETH increases, exerting upward pressure on its price.
Rating: 9.5/10
Supply: 118,780,000 / 200,000,000
Release date: August 1, 2014
Description: Discover Ether and join the cryptocurrency revolution.
Risk warning: Trading, buying, or selling cryptocurrencies is extremely risky and not for everyone. Never risk money you cannot afford to lose.
Ethereum Could Outperform Bitcoin in the Coming Weeks
Historically, liquid markets for tradable assets such as stocks and cryptocurrencies often experience a year-end rally, known as the “Santa Claus Rally,” which may extend into January. This period typically brings some of the most profitable gains of the year.
In previous Santa Claus rallies, Ethereum has outperformed Bitcoin in price gains. For instance, in 2022-2023, Bitcoin’s price rose by 55% from $24,059 to $37,299, while Ethereum saw a 95% increase from $646 to $1,259.
Ethereum’s fundamentals remain strong due to network upgrades like the transition to proof-of-stake and the growing adoption of DeFi and liquid restaking. These factors suggest that Ethereum could continue to perform well and even outpace Bitcoin in the coming weeks.
Technical Analysis for Ethereum (ETH)
Ether (ETH) has advanced from $2,471 to $4,093 since November 4, 2024, with the current price standing at $3,898. A break above the $4,500 level would indicate a potential test of the $5,000 price level. As long as ETH stays above key support levels, there’s little risk of a significant sell-off.
Important Support & Resistance Levels for Ethereum (ETH)
As seen on the chart from March 2024, ETH is currently trading below its recent highs. If it breaks above $4,500, the next resistance level could be $5,000. On the downside, support at $3,500 is critical. A break below this level would signal a potential decline to $3,000 or even lower.
What Supports the Rise in Ethereum (ETH) Price
The positive momentum for Ether is being supported by Bitcoin’s rise above $103,000, as well as the ongoing development of Ethereum’s network and increasing DeFi adoption. The rise of liquid restaking protocols and Ethereum’s strong position in the market are further fueling price increases.
What Could Indicate a Downfall for Ethereum (ETH)
Macroeconomic factors, geopolitical events, or negative news about Ethereum or the broader crypto market could shift market sentiment towards pessimism and lead to a price decline. Additionally, the rise of competing blockchains such as Binance Smart Chain, Solana, and Cardano could attract developers and users away from Ethereum, potentially reducing demand.
Ethereum’s key support level is $3,500, and a drop below this would signal a potential decline to $3,000 and beyond.
What Do Analysts and Experts Say?
Many analysts believe that Ethereum could outperform Bitcoin in the coming weeks, especially given Ethereum’s strong fundamentals and growing ecosystem. Ethereum’s continuous upgrades and its increasing adoption by DeFi platforms position it for further growth, with many experts expecting it to set new all-time highs in the near future.
Disclaimer: Cryptocurrency trading is volatile and risky. Only invest what you can afford to lose. The information provided is for educational purposes and should not be considered as financial or investment advice.
