Ethereum price continued to rise by retail investors have clung to their holdings, a good sign for long-term growth.
Minimal inflows to exchanges and Spent Output Profit Ratio (SOPR) hovering near the breakeven point indicate a collective resistance to sell despite the price rise.
The behavior pattern highlighted periods where Binance and OKEx user deposit addresses remained active yet did not correspond with a sell-off, even as the price of Ethereum scaled new heights.
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This underlined a strong “buy and hold” strategy among investors. It fueled speculations that Ethereum could escalate to $4,000 if it maintained a support level above $2,800.
ETH exchange inflows | Source: CryptoQuant
Historically, similar conditions have preceded significant price rallies when retail sentiment was aligned as it currently is.
The analysis suggested a potential for a 54% rally from the existing price levels, pushing Ethereum toward a new all-time high. This was driven by sustained retail investment and a prevailing market sentiment that refrains from short-term profit-taking.
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ETH Price Action and Prediction
As the price action showed strong recovery, a rally aiming to match the historical pattern of following Bitcoin’s lead in reaching new highs.
The chart demonstrated a clear upward trend with Ethereum gaining momentum after Bitcoin set a new all-time high (ATH). Traditionally, Ethereum has tended to follow Bitcoin’s peak performance by four to six weeks.
At present, Ethereum stood 54% away from its own ATH. Given the current rate of increase and market sentiment, projections indicated that Ethereum could hit a new ATH soon.
Technical indicators on the chart, including the Relative Strength Index (RSI), were poised in a range that historically aligned with bullish momentum.
ETHUSD daily chart | Source: Trading View
The RSI, remaining under the overbought territory, indicated room for growth without immediate risk of a downward correction.
This set the stage for Ethereum to possibly reach and exceed the $4,800 mark, driven by steady buying pressure and a bullish market outlook mirrored in its recent price movements.
If the trend persisted, Ethereum was set to carve a new peak, fulfilling the pattern of achieving record highs following Bitcoin’s lead, solidifying its position in the market amidst growing investor confidence.
Ethereum Logarithmic Regression Rainbow
Moreover, the bounds of a logarithmic regression rainbow, paints a compelling narrative of ETH’s cyclical market behavior.
Historically, Ethereum experienced its peak at band 10 and found its lowest point at band 2 during its initial market cycle.
In its subsequent cycle, it reached a high in band 7 and a low in band 4, indicating a tightening of its trading range over time.
The progression pattern suggested that Ethereum’s price fluctuations were becoming less volatile, with peaks and troughs coalescing toward the middle bands of the logarithmic regression rainbow.
This pattern pointed to an emerging stability in Ethereum’s market valuation relative to its explosive early years.
ETH Logarithmic Regression Rainbow | Source: IntoTheCryptoverse
By mid-2025, the Ethereum Logarithmic Regression Rainbow forecasts a potential top near band 6, pegging Ethereum’s price at around $9,200. Further up, band 7 predicts a possible surge to $17,600.
These projections aligned with a growing confidence and a maturing market that increasingly recognized ETH’s long-term value proposition.
As the crypto market evolves, Ethereum continues to demonstrate significant growth potential.
The Ethereum Logarithmic Regression Rainbow is a strategic tool for investors aiming to anticipate future price levels effectively. This tool will be of significance also since Ethereum is edging closer to these critical upper bands by mid-2025.