Prominent cryptocurrency analyst Jelle does predicted Ethereum (ETH) will rise to $5,000 by the end of this year. This prediction has significant justification from a technical point of view.

Ethereum Rally: Setting the Stage for Fresh Highs

Jelle’s forecast comes after Ethereum experiences stabilization above the $3,500 level, following a correction from its March high of over $4,000.

With the crypto community watching closely, Jelle’s insights suggest significant upside potential for Ethereum, especially as the market anticipates the launch of cash ETFs (ETFs).

Jelle’s analysis points to a key moment for Ethereum. After briefly falling in price, Ethereum rebounded, reaching as low as $3,384 last Friday; The asset is currently trading around $3,500 and is showing a rebound, albeit with a decline of 2.2% in the last 24 hours and almost 5% in the last week.

This stabilization is a tiny fluctuation and a critical support level that can predict significant price movements. According to Jelle, “ETH successfully converted $3,500 in support. Very few people are ready to set up-to-date all-time highs, but there is a lot of $5,000 ETH on the menu this year. Let’s get started.”

This statement underscores the robust belief that Ethereum is recovering and poised for a significant upward trajectory.

Current market dynamics create fertile ground for such optimism. Ethereum’s resilience to hold key support levels amid market volatility bodes well for its potential to break past highs.

The anticipated launch of Ethereum cash ETFs is expected to further strengthen its market capitalization, attracting institutional and retail investors drawn to its ecosystem and providing the promise of increased liquidity and regulatory compliance.

$ETH successfully converted $3,500 in support!

Very few people are ready to set up-to-date all-time highs, but there is a lot of $5,000 ETH on the menu this year.

Let’s get started. pic.twitter.com/k438SvCX2o

— Jelle (@CryptoJelleNL) June 17, 2024

Strategic moves and market sentiment

The broader cryptocurrency market, especially Ethereum, is buzzing with anticipation of a spot on ETH ETFs. Recent data from NewsBTC highlights that the cryptocurrency community is particularly bullish on Ethereum, as evidenced by the significant number of contracts expiring ETH options.

Most of them are call options, betting on Ethereum’s price rising, with a particularly low call ratio of 0.36, signaling robust bullish sentiment among traders.

This bullish outlook is further supported by significant purchasing activity from long-term holders, particularly institutions. On June 12, these investors made one of the largest daily Ethereum purchases, purchasing 298,000 ETH, just shy of the record 317,000 ETH purchased on September 11, 2023.

Such investment activity not only underscores confidence in Ethereum’s long-term value, but also indicates that the market is poised for growth, especially with potential catalysts such as the approval of spot ETH ETFs on the horizon.

Moreover, QCP Capital’s analysis reinforces this sentiment, noting Ethereum’s higher implied volatility than Bitcoin. This suggests that while the overall cryptocurrency market may experience reduced activity over the summer, Ethereum could see significant trading volume and price action, especially if ETFs begin trading live.

Featured image created with DALL-E, chart from TradingView