🚀 Crypto Pundit Predicts Ethereum Could Explode to $7000 if this Happens

[Undefeated_Lamba]

Ethereum (ETH) extended its weekly decline on Thursday, slipping back below $3,300 amidst a challenging period for the broader cryptocurrency market. This downturn comes as the market navigates the second week of January 2025, grappling with increased volatility and uncertain sentiment.

Nevertheless, despite the temporary dip, analysts are buzzing with optimism, citing bullish patterns and fundamental strength that could propel its price to unprecedented heights.

On Thursday, renowned analyst Ali Martinez drew attention to a bullish “inverted head and shoulders” pattern emerging in Ethereum’s price action. Martinez emphasized that the crypto asset could experience a short-term drop to $2,900 to complete the pattern’s second shoulder before staging a powerful rebound.

“A downswing to $2,900 will be very bullish for Ethereum as it creates an excellent buy-the-dip opportunity to target $7,000 next.” Martinez stated echoing sentiments by other analysts.

Meanwhile, technical analyst Alan Santana suggested that Ether could reach $8,000 early in 2025. In his analysis, he emphasized Ethereum’s long-term ascending price channel since 2023, noting that the rally to $8,000 might only be an intermediary target during a broader bull market cycle.

“Ethereum can easily exceed $10,000 in the 2025 cryptocurrency bull-market bull-run. This is not the top, but merely a step in the ongoing bullish phase.” He stated.

However, not all analysts are equally optimistic. Analyst Egrag Crypto presented a tempered outlook, suggesting that Ethereum may face diminishing returns compared to previous cycles. “ETH could be the most disappointing project this cycle if market dynamics limit its growth compared to previous bull runs,” he noted.

He, however, projected a market cap between $915 billion and $1.16 trillion, with a price target of $6,000 to $7,000 based on Fibonacci extensions.

That said, beyond technical patterns, fundamental on-chain data provides compelling evidence of Ethereum’s increasing demand. According to crypto analytics firm IntoTheBlock, 74.7% of Ethereum addresses are now long-term holders, surpassing Bitcoin’s long-term holder percentage.

“This trend highlights Ethereum’s strong holder base, which continues to grow despite market fluctuations.” The firm tweeted.

CryptoQuant also reported a significant uptick in Ethereum outflows from centralized exchanges, particularly Binance. This signals increased accumulation by investors. Analysts noted Binance’s dominance in processing ETH and BTC outflows throughout 2024, reinforcing its role as a gateway for crypto trading.

Furthermore, CryptoQuant’s “Shayan BTC” highlighted bullish signals in the Ethereum futures market. According to him, funding rates have turned positive following a correction to $3,000, indicating growing confidence among traders.

“The renewed demand in the futures market could drive Ethereum toward the $4,000 resistance level in the short term, setting the stage for a larger rally.” Shayan stated.

At press time, ETH was trading at $3,182, reflecting a 3.30% drop in the past 24 hours.