Ethereum Price Prediction: Will the Fuska Upgrade & Technical Breakout Above $3k Trigger a Strong Rally?
Key Takeaways
- The Ether is trading at around $3,060.62, and the price is up by 8% in the past 24 hours.
- The price of ETH is driven by a combination of factors, including the Fusaka upgrade, increased institutional interest, enhanced whale activity, liquidity boost, strong technical signals, and market-wide recovery led by BTC.
- For the upcoming week, the price of the ETH is projected to remain within a range of $3,079.11 and $3,177.27.
- If the ETH successfully overcomes $3100 level, reaching $3500 is still on the table.
- Whether ETH can form a strong rally depends on whether the Fusaka upgrade on the network can deliver its promises.
Ether Current Market Scenario: How is Ether Performing Now?
The Ether is trading at around $3,060.62, and the price is up by 8% in the past 24 hours. The market cap touched $369.37 billion. The 24-hour trading volume surged by over 12% to hit $29.99 billion. The Fear & Greed Index has risen from extreme fear to 28, indicating a shift toward fear. The volatility remains high with 8.39%. The Ether is trading above the 20-day Simple Moving Average and has recorded a weekly gain of 5%. The following are the key market indicators and their value.
- Fear & Greed Index: 28 (Fear)
- Market Sentiment: Bullish
- Supply Inflation: 0.21% (Low)
- Dominance: 11.75%
- Volatility: 8.39% (High)
Ether Price Prediction Tomorrow, & This Week
For the upcoming week, the price of the ETH is projected to remain within a range of $3,079.11 and $3,177.27. Nevertheless, if the ETH successfully overcomes $3100 level, reaching $3500 is still on the table. A strong rally may be on the horizon if the ETH is able to sustain the current momentum.
| Date | Day of week | Daily Low | Daily High | Average |
| 04/12 | Thursday | $3,079.11 | $3,149.64 | $3,114.38 |
| 05/12 | Friday | $3,087.69 | $3,177.27 | $3,132.48 |
| 06/12 | Saturday | $3,055.24 | $3,130.91 | $3,093.08 |
| 07/12 | Sunday | $3,068.63 | $3,131.29 | $3,099.96 |
| 08/12 | Monday | $2,809.37 | $3,077.74 | $2,943.56 |
| 09/12 | Tuesday | $2,875.52 | $3,112.03 | $2,993.78 |
| 10/12 | Wednesday | $3,079.95 | $3,163.7 | $3,121.83 |
Market Outlook: Technical Indicators, Eco-system Developments, Institutional Activity & Macro Trends
The major factors influencing the price of ETH include macroeconomic conditions, technological upgrades, whale activity, and institutional interest. Here is a detailed look at each of these factors.
Technical Analysis: The Technical Signals Show Building Bullish Momentum
The Ethereum is currently trading above the 10-day Exponential Moving Average (EMA) of 2,981.2 and the Simple Moving Average (SMA) of 2,982.0. The MACD is sending a strong buy signal. The 14-day Relative Strength Index (RSI) reading of 46 shows a neutral position and room for upside.
The Ether broke above the crucial psychological level of $3000. The technical breakout led to the forced closing of short positions and algorithmic buying. If the Ether can hold the current level, the next crucial level is at 3,176.7. If the ETH breaks above $3100, retesting $3500 can not be dismissed.
Whale Accumulations Heighten Amid the Upcoming Fusaka Upgrade
The most anticipated Fuska upgrade will go live today. The core feature of the upgrade is PeerDAS (Peer Data Availability Sampling), which will enable the validators to verify data in small pieces instead of downloading everything. The upgrade is anticipated to increase the scalability of the network and reduce transaction fees by about 60%.
The gas limit is projected to increase to 60 million after the upgrade. The whales are accumulating ETH amid the hype around the upgrade. If the technological upgrade successfully delivers its promises, a strong rally is expected.
Institutional Activity: ETF Flows and Ether Treasury Holdings
The ETH spot Exchange Traded Funds (ETFs) recorded a net inflow of $78. 60 million. The Tom Lee-led Bitmine Immersion Technologies, Inc. (BMNR) has added 96,798 ETH on December 1. The company’s purchase of the ETH reflects the institutional confidence. Commenting on the most recent purchase, the company chairman, Tom Lee, stated Fusaka upgrade, upcoming Fed rate cuts, and the end of quantitative tightening as major tailwinds.
The Ending of Quantitative Tightening Injects Liquidity, and Bitcoin’s Rally Adds Renewed Momentum to the Market
The U.S central bank injected $13.5 billion into the banking system, ending the quantitative tightening. Liquidity is a crucial factor in deciding the market sentiment. The increased liquidity will boost the risk appetite of investors. The increased risk appetite is good news for high-risk emerging markets such as crypto. Besides, according to the latest CME FedWatch, the traders are now betting on 89% probability for Fed rate cuts.
Moreover, Bitcoin has reclaimed $93k zone today, and its rally added renewed momentum to the crypto market. The rebound of the world’s most valued digital currency has pushed the price of major digital assets, including ETH. If the BTC continues in an uptrend, it’s anticipated to create a bullish impact on the whole crypto market.
The Bottom Line: What’s Ahead for ETH?
The price of ETH is driven by a combination of factors, including the Fusaka upgrade, increased institutional interest, enhanced whale activity, liquidity boost, strong technical signals, and market-wide recovery led by BTC. Whether ETH can form a strong rally depends on whether the Fusaka upgrade on the network can deliver its promises.
Disclaimer: These crypto price forecasts are based on predictive modeling and should not be considered financial advice.
Crypto & Blockchain Expert