Ethereum, which is the most valuable digital currency behind market leader Bitcoin, keeps a bearish bias as this token approaches the key US$3000 support barrier. At 0930 hours Eastern Time, on Friday, December 29th, it was changed hands at US dollar 3,300. Many investors like to purchase a perfect case event because analysts indicate a short selling. Here is why that may happen.
Ethereum has been unable to break the resistance around $3,500 anytime recently because its 50-day moving average acts as a ceiling. With that rejection, plus given all the bearish feelings around this market, it’s easy to predict another very short-term swing down anytime toward the critical psychological level of $3000, including the 200-day simple moving average.
It’s been a bear since mid-December when news of the Federal Reserve cutting fewer interest rates than forecasted in 2025 sent shockwaves through both traditional and crypto markets. Although this could be a setback in the near term, Ethereum has set itself up for major gains at the close of 2024, leaving investors pondering if the expected dip is an opportunity to buy.
Ethereum ETFs with Staking: What Could it Mean for Investors and the Network?
1. 0% Management Fee
The staking yield on Ethereum is around ~3.2%. Assuming a conservative scenario where issuers stake only 25% of total assets and incur a 20% operating cost (for the staking… pic.twitter.com/pGojnHdjjs— Tom Wan (@tomwanhh) November 7, 2024
At $3,000, investors with a long-term perspective are getting a very good entry point. In general, the cryptocurrency market will surge very strongly in 2025, and Ethereum is surely going to be at the forefront of this surge for many reasons:
Pro-Crypto Policy Shift in the U.S.
Many believe, with the incoming administration said to be pro-crypto, the regulatory environment will be so much friendlier, it may even open the door to innovations such as spot Ethereum ETFs that allow staking-a feature believed to be of considerable interest to investors.
Ethereum still reigns supreme for DeFi, with 56% of the total value locked in smart contracts. It also became one of the most reliable among institutional players, with almost $500 million already accrued by BlackRock’s on-chain money market fund.
Recent spot Ethereum ETFs have gained steady demand, a trend set to accelerate in 2025 with the launch of staking-enabled products.
Historically, Ethereum has followed Bitcoin in terms of price action but has typically lagged by several months. In much the same way that Bitcoin is now entering the price discovery phase subsequent to the halving, Ethereum is likely to head into such a phase at the beginning of 2025.
Following the historical trends, ETH had a tick in January and, from several analyses, could rechallenge its $4,800 high up until the first quarter. Further, if Ethereum were to reenact the 2021 bull run, the main cryptocurrency could meet the 4.236 Fibonacci extension, a possible target as high as $18,000 toward 2025-2026.
While these types of gains may be overly optimistic, the possibility of a global Bitcoin accumulation-something likely to be induced by U.S. policy waves through the crypto market, surging Ethereum further.
Investing in cryptocurrencies is never void of risks: bear markets have seen prices fall, sometimes sharper than expected, while bull markets do see exponential gains. So, for investors with stomachs for short-term volatility, Ethereum’s projected dip to $3,000 could make for a pretty ideal entry point ahead of what was to be a transformative 2025.
BREAKING: 🇺🇸 Trump’s Ally Senator Lummis Pushes to Sell Some of the Fed’s Gold to Buy Bitcoin pic.twitter.com/pRtcEvKfYz
— Swan (@Swan) November 15, 2024
But, like any other cryptocurrency, such twists and turns need to be broadened and embraced in the long-term investment strategy. Ethereum is going to be in focus for all when this key price level approaches. The intriguing question, though, will the dip prove to be the perfect buying opportunity or no-the bears still in pole position? Only time shall tell.
