Ethereum (ETH) is preparing to make a significant impact in the institutional finance sector through its new initiative, Etheralize. Introduced as the corporate marketing and product development division of the Ethereum ecosystem, Etheralize aims to establish the cryptocurrency as a prominent player on Wall Street. The involvement of the Ethereum Foundation and Vitalik Buterin in this venture has raised hopes that Ethereum can become a leader in global finance. Additionally, the recent rise in popularity of spot Ethereum ETFs in the United States has led to increased price activity for ETH.
Spot Ethereum ETFs have seen inflows of over $70 million on their last trading day, January 22. This influx, coupled with six consecutive days of gains, indicates a growing interest in ETH among investors. However, current market data suggests that ETH’s price may experience a downturn and could be drawn towards the demand zone around $3,000. Investors are eagerly awaiting to see if the price can surpass $4,200 after this pullback, which could potentially trigger a significant altcoin season.
Analyzing the price movement of Ethereum in January, it is apparent that both bulls and bears have significant influence. Daily data suggests a potential new upward trend, but declining trading volume may hinder the sustainability of this rally. If market volume fails to support the trend, ETH may continue to consolidate below $3,400.
To achieve new highs, bulls must regain strength and push ETH’s price above the critical resistance level of $3,500. The ongoing downward trend in trading volume complicates the likelihood of this recovery. However, the Relative Strength Index (RSI) on Ethereum’s monthly chart has historically never dropped below the 40 level, providing strong support during current declines.
There is potential for ETH to surpass the $4,000 mark in the first quarter of 2025, making a stable price increase feasible. However, it is crucial to bolster bullish strength and diminish bearish influence for this upward trajectory.
