Ethereum Price Prediction: Why ETH Could Be Primed for a Rally to $4k

Highlights:

• Ethereum is trending upwards after holding the $3129.1 support
• Rally off this support could put the $3600 resistance in focus
• A rally through $3600 after Trump’s inauguration could push Ether to $4k or higher

Ethereum, like the rest of the cryptocurrency market, is coming off a highly volatile weekend. However, it is gaining traction today as the broader cryptocurrency market starts gaining momentum. At the time of going to press, Ethereum was trading at $3368.90, up by 5.75% in the day. Ethereum trading volumes are rising in the day, indicating the rising investor interest in the number two cryptocurrency. At the time of writing, Ethereum trading volumes were up by 92.82% to $65.85 billion.

Ethereum Price Rallies as Momentum Shifts from Trump-related Meme Coins

Ethereum’s rising momentum has much to do with the return to momentum into the more established cryptocurrencies after a weekend filled with Trump-related meme coins. On Saturday, Trump launched a meme coin that sucked liquidity out of most of the market. However, it failed to push through its 24-hour high of $77, and it has since started declining. Also, other meme coins have come all related to the Trump family and the market is starting to slow down on the excitement around such coins.

This has led investors to flock back to coins that hold more fundamentals. Ethereum happens to be one of these cryptocurrencies. Not only is it the second largest cryptocurrency by market cap, but it is also one of those that are yet to retest their all-time highs even as the bull cycle gains momentum. This makes it one of the most undervalued cryptocurrencies to buy now, one that could see a significant pump as the broader market starts to gain traction.

Trump’s Company Buys $20 Million Worth of Ether

Besides the momentum after a dramatic weekend, Ethereum could be one of the cryptocurrencies that are set to benefit from the Trump presidency. One of the pointers to this direction is the fact that Trump is now an investor in Ethereum. The latest news hitting the market is that Trump’s blockchain company, World Liberty Financial, bought $20 million worth of Ethereum.

Trump bought 15,000 ethereum , ETH up+2% , Solana network down

Vitalik: pic.twitter.com/KvOFmywToO

— naiive (@naiivememe) January 20, 2025

This is a big deal as it indicates that the cryptocurrencies could reap big from Trump’s pro-crypto policies. Expectations are high that Trump will make a crypto-friendly executive action today. This could trigger a parabolic price move for Ethereum and other cryptocurrencies that are on Trump’s radar. The odds are high that Ethereum could rally to a high of $4000 or higher in the short term.

Ethereum Strengths Getting Clearer to Investors

Ethereum could also benefit from the fact that most of its competitors are showing weaknesses in their reliability. The recent surge in meme coins on the Solana blockchain has led to network congestion, making it impossible to withdraw. Other Ethereum competitors have experienced similar issues, including downtimes.

All this gives credence to Ethereum’s core fundamentals. It is a factor that could see more money, especially institutional money, go into Ethereum once Trump settles in office. Already Ethereum has an upgrade in the works that could help it operate even better as a network, further entrenching its position in the market.

Technical Analysis – Ethereum Price Bounces Off Support with High Volumes

From the charts, Ethereum holds firmly above the $3129.1 support despite the weekend correction. This is an indicator that investors do not expect Ethereum to drop below $3000 anymore.

Now that bullish sentiment is on the rise again in the market, Ethereum could be headed to $3600 in the short term. A rally through this resistance could see Ethereum rally to $4000 in the short term.

Recap

Ethereum is on a rebound today, pretty much like the rest of the market. With Trump expected to make some pro-crypto executive orders today, Ethereum could easily rally to $4000 due to a confluence of broader market sentiment and strong fundamentals.