5 reasons why Ethereum price can jump 20% by January 1

Ethereum price is still struggling to find direction as profit-taking and weak sentiment in the crypto industry continues. Nonetheless, fundamentals such as increased spot ETH ETF inflows and negative net FX flows, as well as technical metrics such as the MVRV indicator, point to a potential rebound by January 1st.

Bullish catalysts for Ethereum price

There are several reasons why the price of Ethereum will likely rebound by at least 20% over the next few days before the end of the year.

1. Spot Ethereum ETFs are attracting more investor interest.
2. Data shows that crypto exchanges are experiencing outflows from Ethereum.
3. The first quarter is the best quarter of the year for Ethereum.
4. Ether’s MVRV ratio fell to 1.8%.
5. Ether has solid techniques.

1. Spot Ethereum ETFs see inflows

Data by SoSoValue shows that spot Ethereum ETFs added more than $130 million in assets on Monday, even as the coin retreated. These capital inflows partially offset the capital outflows recorded over the previous two days. Monday’s inflows brought total inflows to more than $2.46 billion, bringing total assets to $12 billion.

2. ETH exchange outflows increase

Data by In the block shows that outflows from exchanges are increasing, a sign that investors are accumulating the coin. The figure shows that aggregate exchange net flow fell to 49.6k ETH, the lowest level since December 19. Increased accumulation could support Ethereum’s price recovery.

3. Q1 is Ethereum’s best quarter

The other reason why ETH Price can rebound is that the first trimester is usually his best period of the year. ETH rose 60% in the first quarter of this year, after soaring 52% during the same period in 2023. Its average first quarter performance over the past eight years was 92.75%. Therefore, it is likely that the coin will rise in this anticipation.

4. ETH price MVRV indicator is at 1.54%

Meanwhile, the popular market value/realized value (MVRV) indicator fell to 1.54. This indicator looks at the market value of an asset and compares it to the realized value. Ideally, an asset is said to be overvalued when it exceeds 3.8. Therefore, the value of ETH being 1.54 is a sign that the coin is still undervalued.

5. Ethereum Price Technical Data Suggests a 20% Upside is Possible

The weekly chart shows that the ETH price has pulled back after facing strong resistance at around $4,000, around 20% above the current level. Ether has remained above the 50-week moving average and the ascending trendline that connects the lowest levels since June 2022. This performance means the bulls remain in control for now.

Therefore, there is a high chance that the coin will rise and retest $4,080, which coincides with the breakout level of the Mathematical Murrey Lines (MML) and the third resistance of the Woodie pivot point. A move above this level could see ETH price reached $5,000 as we predicted.

The bullish view will become invalid if ETH price falls below the top of the MML trading range and the first Woodie support at $2,812. Such a decline could see it fall to the ascending trendline at $2,500.