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Top Ethereum Analysts Predict $4.5K Surge Amid Trump-Led Accumulation

By:
Yashu Gola
Published: Jan 31, 2025, 05:09 GMT+00:00

Key Points:

  • Ethereum eyes $4,500 as analysts highlight bullish technical patterns and Trump’s aggressive ETH accumulation.
  • Key resistance at $3,344, with a breakout potentially pushing ETH toward $4,000–$4,500, while failure could trigger a drop to $2,810.
  • MVRV momentum signals caution, as past instances of this metric dropping below the 160-day MA led to major corrections.
Ethereum price prediction

In this article:

Top Ethereum (ETH) analysts predict a strong upward move toward $4,500 in February amid a slew of bullish indicators ranging from fundamental to technical.

Ethereum’s Expansion Phase Has Begun

Market analyst Ted Pillows highlighted Ethereum’s entry into its short-term expansion phase, following a period of accumulation between $3,100 and $3,250 and manipulation that briefly dropped ETH to around $3,080.

Source: X
Source: X

His analysis suggests that ETH could rally above $4,000 in the coming days, potentially reaching $4,500 by February. He also linked Ethereum’s bullish outlook to Donald Trump’s aggressive ETH purchases, which continue to drive market confidence.

Trump’s World Liberty Financial (WLFI) has accumulated over $388 million in digital assets, including over $204 million worth of Ethereum purchases.

World Liberty Finance crypto holdings
World Liberty Finance crypto holdings. Source: Arkham Intelligence

On inauguration day alone, WLFI bought $47 million worth of ETH and continued acquiring $10 million worth daily. This consistent buying pressure has helped stabilize ETH’s price and reinforced bullish sentiment in the market.

Meanwhile, analyst Karan Singh Arora emphasized the critical resistance level at $3,344, marking it as the “flip-to-pump” zone.

ETH/USD eight-hour price chart
ETH/USD eight-hour price chart. Source: TradingView

If ETH secures a daily close above this level, it could push toward the next resistance area near $3,800, with a broader breakout potentially targeting the $4,000 mark.

However, failure to break this resistance could trigger a retracement to the $2,980–$2,810 range, where a strong demand zone exists.

Ethereum Falling Wedge and Bullish Divergence: Cas Abbe’s View

According to Cas Abbe, Ethereum is currently one of the most undervalued crypto assets. Despite spot ETH ETFs going live and Trump buying over $10 million in ETH daily, the price remains 35% below its all-time high.

ETH/USD daily price chart
ETH/USD daily price chart. Source: TradingView

He pointed out a bullish divergence and a falling wedge pattern on ETH’s daily chart, which historically signal a trend reversal. The wedge’s breakout is around $3,200, with an initial upside target of $3,600 and an extended move toward $4,000–$4,500.

Ethereum Derivatives Data Suggests Interim Decline Risks

TraderOasis from CryptoQuant provided a broader market structure analysis, noting an increase in Ethereum’s open interest, which suggests fresh positions are being built.

Ethereum open interest
Ethereum open interest. Source: TradingView

However, funding rates indicate that many traders are shorting ETH, meaning they expect prices to decline. This bearish sentiment and an increase in open interest suggest that many short positions have been added.

Ethereum funding rate
Ethereum funding rate. Source: CryptoQuant

He also identified a liquidity gap between $2,900 and $3,100 below the current trading range. A liquidity gap occurs when price levels experience little trading activity, often acting as a magnet for price movements.

Ethereum open interest
Ethereum open interest. Source: CryptoQuant

If ETH dips into this gap, it could trigger a cascade of liquidations for short sellers, leading to a rapid price reversal as traders rush to cover their positions. ETH could experience a strong rebound if this scenario unfolds, fueling a rally past resistance levels.

Ethereum MVRV Momentum Hits Level That Preceded 40% Correction

Despite the bullish outlook, analyst Ali highlighted a concerning metric—Ethereum’s Market Value to Realized Value (MVRV) ratio dropping below the 160-day moving average.

The MVRV ratio compares ETH’s current market price to the average price at which all ETH was last moved on-chain. A drop below the 160-day moving average signals that holders increasingly risk falling into losses, often triggering panic selling and corrections.

Ethereum MVRV vs. price
Ethereum MVRV vs. price. Source: Glassnode

The last time this occurred, ETH plunged 40%, declining from $3,500 to $2,100.

While this pattern does not guarantee a repeat, traders should remain cautious, as short-term volatility may precede Ethereum’s next sustained uptrend.

About the Author

Yashu Gola is a journalist focusing on cryptocurrency markets since 2014. He writes for Cointelegraph and CoinChapter and has previously served as the chief editor for NewsBTC.

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