By Muhammad Razi 
Ethereum (ETH) saw a strong movement on January 24, with its price increasing by 7.5% over the past few days. Ethereum price jumps 7.5%, reaching an intraday high of $3,421, climbing above its 100 day Simple Moving Average (SMA), which had been breached just a week earlier. As ETH rises, analysts are optimistic about its growth potential, pointing to several factors driving this momentum.
Market Recovery Helps Lift Ethereum
Ethereum’s price surge is part of a wider market recovery. Bitcoin (BTC), the leading cryptocurrency, gained 2.6% in the past 24 hours, pushing its price above $105,000. Altcoins like XRP and Solana also saw modest gains of 1% and 6%, respectively.
This recovery is fueled by positive sentiment in the cryptocurrency market. This optimism is partly due to a recent executive order signed by U.S. President Donald Trump. On January 23, Trump signed an executive order aimed at bolstering American leadership in digital financial technologies. This order highlights the importance of digital assets like Bitcoin and Ethereum in promoting innovation and economic development.
The executive order establishes a working group to explore new digital asset regulations and create a potential national “digital asset stockpile.” Additionally, it repeals the controversial SAB 121 crypto accounting rule. This rule previously required financial institutions to treat crypto holdings as liabilities. The market views this shift as a sign of increasing governmental support for cryptocurrencies, which has further boosted Ethereum’s price.
ETF Inflows Propel Ethereum’s Surge
Another major factor contributing to Ethereum’s price increase is the significant influx of capital into Ethereum exchange-traded funds (ETFs). Over the past few weeks, U.S.-based Ethereum ETFs have seen steady inflows, totaling $396.5 million over six consecutive days. BlackRock’s ETHA fund has been particularly prominent, receiving $287.7 million in inflows from January 13 to January 23.
These strong ETF inflows are driving Ethereum’s bullish momentum as institutional interest in ETH continues to grow. Analysts are optimistic that Ethereum ETFs will expand further in the coming years, especially if regulatory changes allow for the inclusion of staking rewards in these products.
Ethereum’s Technical Outlook
From a technical standpoint, Ethereum is currently trading above a key support zone between $3,200 and $3,390. This range has been critical for buyers and sellers. Approximately 4.09 million ETH have been purchased by 5.73 million addresses in this area. According to data from IntoTheBlock, the immediate support around $3,340 is particularly important, as it marks the point with the highest concentration of buy orders.
If Ethereum can hold above this support level, it may continue its upward trend. The next major resistance level to watch is the 50 day SMA at $3,502, followed by a higher target around $4,109, which represents the December 16, 2024, range high.
If sellers push Ethereum’s price below the support zone, the next significant support levels to watch are the 100-day SMA around $3,260, the psychological level of $3,000, and the 200-day SMA at $2,986.
Ethereum Price Predictions: What’s Next?
Market analysts are increasingly bullish about Ethereum’s price outlook in the short term. Predictions suggest ETH could reach as high as $7,000 in the first quarter of 2025, driven by Trump’s crypto-friendly policies and continued expansion of the Ethereum ecosystem. Some analysts even expect Ethereum to break out from its current bullish trend, with potential price targets of $3,850 and $4,840. Given the recent Ethereum price jumps 7.5%, market analysts are increasingly optimistic about ETH’s future price prospects.
Conclusion: Bright Prospects for Ethereum’s Future
With strong market sentiment, growing institutional interest through ETFs, and a favorable regulatory environment in the U.S., Ethereum’s future looks promising. The current price surge, along with an optimistic outlook for the upcoming months, indicates that Ethereum has the potential to reach new heights in 2025. Investors and analysts are closely monitoring key technical levels and developments in the cryptocurrency space, which could further accelerate ETH’s upward momentum. As Ethereum continues to gain traction, the broader cryptocurrency market is likely to benefit, and investors will be keen to see if ETH can maintain its momentum and break through significant resistance levels.