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Ethereum has seen its price rally stall over the past 15 days, yet technical analysis and market sentiment suggest potential further gains in the coming weeks. As of Saturday, Ethereum (ETH) was trading at $2,550, slightly below its monthly high of $2,735. This marks an impressive 85% recovery from its lowest level earlier this year.

Market Predictions: Will Ethereum Surge to $4,000?

According to data from Polymarket, a decentralized prediction market, traders are optimistic about Ethereum’s future. The probability of ETH reaching $4,000 by 2025 has climbed to 40%, up from just 16% last month. This is the highest level of confidence recorded since March 1. If Ethereum achieves this target, it would represent a significant 60% increase from its current price.

Polymarket also places the odds of Ethereum hitting $5,000 at 25% and $6,000 at 17%. On the downside, the probability of ETH dropping to $1,000 has decreased to 16%, indicating reduced bearish sentiment among traders.

Improved Fundamentals Fuel Optimism

Ethereum’s network fundamentals have shown considerable improvement recently, strengthening the case for potential price growth. Data from blockchain analytics firm Nansen reveals that the number of transactions on the Ethereum network has surged by 35% in the past 30 days, reaching 39 million. Additionally, active wallet addresses have seen a modest increase of 0.4%, now totaling 6.7 million.

Another key factor bolstering Ethereum’s outlook is the growing interest in spot Ethereum ETFs. Over the past week, these financial products have attracted over $238 million in inflows, pushing their total assets under management to $2.76 billion. Leading ETFs like BlackRock’s ETHA hold $3.4 billion in assets, while Grayscale’s ETHE and ETH products manage $2.9 billion and $1.28 billion, respectively.

Technical Analysis: Ethereum’s Bullish Patterns

From a technical perspective, Ethereum’s chart suggests potential for further upward momentum. Earlier this month, ETH formed a golden cross, a bullish signal that occurs when the 50-day moving average crosses above the 200-day moving average. This pattern is often viewed as an indicator of sustained price growth.

Ethereum is also developing a bullish flag pattern on its daily chart. The flagpole began earlier this month, peaking at $2,736, which corresponds to the 50% Fibonacci retracement level. The current consolidation phase appears to form part of this flag pattern.

If Ethereum breaks above the 50% Fibonacci retracement level at $2,736, analysts anticipate further gains. The next target would be the 61.8% retracement level at $3,052. A sustained rally beyond this point could see Ethereum heading toward the critical $4,000 mark.

Key Takeaways for Investors

For investors considering Ethereum, here are a few points to keep in mind:

  • Ethereum’s network activity and fundamentals are improving, with rising transactions and active addresses.
  • Spot Ethereum ETFs are gaining traction, reflecting increased institutional interest.
  • Technical indicators, including the golden cross and bullish flag pattern, point to potential price growth.

While the short-term outlook shows promise, as with any investment, it’s essential to approach with caution. Market conditions can change rapidly, and cryptocurrency investments come with inherent risks. By staying informed and monitoring key metrics, investors can make more strategic decisions in this evolving space.

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