The second largest cryptocurrency, Ethereum (ETH), returned to the headlines again. Its price could skyrocket very soon according to many experts and some even believe it could go up and touch $7,000. This speculation is being added by a large outflow of ETH of $402 million from exchanges. But what does all this mean? Here’s what’s happening:
Big Money Moves: $402 Million ETH Outflow
Over the past 48 hours investors have moved an obscene $402 million worth of ETH off of crypto exchanges. This is the point when we know for sure that “whales” are buying ETH and will hold onto it instead of selling. Therefore, it creates buying pressure, which, in turn, increases the price of an asset. Think of it as demand rising and price rising on account when a popular sneaker brand stops selling a certain shoe.
Ethereum Following Bitcoin’s Path?
Recent chart posted by a well known crypto expert shows that the current movements of price in Ethereum is very similar to what transpired for Bitcoin (BTC) before its big move in 2024. If history has any say about it, Ethereum’s price has an opportunity to skyrocket. This is a pattern that investors are watching closely to see if ETH will chart a similar breakout.
Trump’s Impact on Crypto
Another interesting factor is that the former U.S. President Donald Trump has invested in Ethereum. More people invest because of his support for cryptocurrencies. Eric Trump, his son, even posted on social media not so recently saying “In my opinion, it’s a great time to add ETH.” For many, if political leaders throw their weight behind crypto then the prices of crypto will become much stronger and their adoption will likely be far wider.
Could ETH Really Reach $7,000?
Its price is currently around $3,293 but some experts forecast it to hit $7,000 soon. MVRV pricing bands is one pricing key indicator and indicates that Ethereum is undervalued. With that, the price may not at all tell you its true value and it might be headed for a big move up.
Furthermore, Ethereum whales purchased 300,000 ETH in a matter of 20 days, whereas the confidence is visible in the market. At the same time, technical patterns such as the ‘falling wedge’ imply ETH may break out and begin a big run.
Final Thoughts
Ethereum may be ready to position itself for a strong move higher as whale accumulation increases, with massive ETH outflows and the interest from influential figures including Trump. Will it really reach $7,000? Whether Ethereum turns out to be the best thing since sliced bread will depend on time, but all indications are that the future promises to be exciting for Ethereum investors.
Also read: Berachain to Airdrop $632M BERA Token with Mainnet Launch
