A confluence of technical and on-chain indicators suggests Ethereum (ETH) could hit a new all-time high (ATH) in the next month or two. Supporting this outlook is Pectra, a developmental upgrade for ETH’s blockchain and macroeconomic factors such as Trump’s inauguration. Here’s a breakdown of the key elements and how they could fuel this potential price surge for ETH. Ethereum’s Bullish Setup Forecasts Price To Hit ATH Soon As noted in a previous article, a bullish inverse head-and-shoulders pattern on Ethereum’s weekly chart, indicates that a potential breakout is near. A decisive flip above the resistance level of $3,350 could propel ETH towards a target of short-term target of $5,825. This target is obtained by adding the pattern’s height to the breakout point at $4,024. Additionally, indicators such as the Relative Strength Index (RSI) are attempting a bullish turnover while the Open Interest (OI) continues to increase. All of these factors suggest that ETH’s value is primed for an increase. ETH/USDT 1-week chart While technicals suggest a positive outlook for Ethereum, fundamentals also indicate an optimistic future for ETH. Ethereum Dominates With $67 billion in TVL Boasting a $68 billion in total value locked (TVL) , Ethereum continues to solidify its dominance in the decentralized finance (DeFi) sector. This hold by ETH is not just seen in the Web4 ecosystem but extends to other sectors like non-fungible tokens (NFT) and smart contracts. Some experts even suggest Ethereum is the backbone of DeFi. ETH TVL Furthermore, Ethereum is set to receive the Pectra update, which is is likely going to boost ETH’s fundamental value. Breaking Down the Pectra Upgrade & Its Impact on Ethereum Pectra upgrade is the most anticipated upgrade for Ethereum that is set to roll out in early 2025. This update contains two phases and has the ability to significantly improve Ethereum’s long-term issue of scalability and security. Key features of this upgrade include validator upgrades, the implementation of Verkle Trees, account abstraction, and smart contract efficiency improvements. These new developments for Ethereum could play a pivotal role in boosting Ethereum’s value Conclusion: What to Watch For? With the inverse head-and-shouders setup, Ethereum price forecast hints at a new ATH around $6,000. Hence, investors should keep an eye on key resistance levels mentioned above along with on-chain flows. Long-term investors should note that a successful and flawless execution of the Pectra upgrade could renew institutional interest and propel Ethereum higher. Investors should also keep a close eye on political events, such as the Trump Inauguration on January 20. In summary, Ethereum’s road to a new all-time high is supported not just by a strong technical setup but also by its market dominance and upcoming upgrades that promise to enhance ETH’s utility. The post Can Ethereum Price Hit New All-Time High Before February 2025? appeared first on CoinGape .
