Ether (ETH) Price Estimate December 2024 – Rise or Fall?

Ether (ETH) advanced from $2,471 to $4,093 since November 04, 2024, and the current price stands at $3,898.

Ether (ETH) remains supported after Bitcoin’s price advanced above $103,000 and many crypto analysts link this positive trend in the crypto market to Donald Trump’s decisive victory in the U.S. presidential election.

Crypto analysts expect that a return of Trump’s policies could lead to another wave of cryptocurrency adoption and because of this, investors are choosing to hold onto their cryptos instead of selling, reflecting growing confidence in the cryptocurrency market.

U.S. investors maintained their strong interest in spot Bitcoin and Ethereum ETFs, with over $1 billion flowing into Ethereum ETFs alone just last week. Positive information is that Ethereum liquid restaking protocols saw their total value locked (TVL) increase by almost 6,000% in 2024. So where is the price of Ether (ETH) going next, and what can we expect from the rest of December 2024?

Today, Crypto Lists will discuss Ether (ETH) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Ethereum liquid restaking total value locked (TVL) soars in 2024

Ether (ETH) has been riding the wave of the ongoing crypto market bull run, experiencing notable gains. Since November 04, 2024, its price and market capitalization have surged by over 60%, reflecting strong investor interest and favorable market sentiment. This growth highlights Ethereum’s resilience and potential as it benefits from broader market trends.

Crypto analysts link this positive trend to Donald Trump’s decisive victory in the U.S. presidential election and according to them, Donald Trump’s critical stance on centralized financial systems, coupled with his unpredictable approach to economic policy, may lead to renewed interest in crypto assets. Positive information is that Ethereum liquid restaking protocols saw their total value locked (TVL) increase by almost 6,000% in 2024 as demand for staked asset utility grew significantly.

Data from decentralized finance (DeFi) aggregator DefiLlama shows that liquid restaking on the Ethereum network experienced explosive growth in 2024. Starting at around $284 million in total value locked (TVL) on January 1, the figure skyrocketed nearly 60-fold, hitting $17.26 billion by December 15. The increase in liquid restaking could be attributed to the utility of liquid restaking tokens (LRTs). These assets simplify the complexities of traditional Ether staking and increase capital efficiency in DeFi.

Liquid restaking allows users who have already staked ETH to secure the Ethereum network to further utilize their derivative tokens. These tokens can be staked again to help secure application-specific blockchains or layer-2 networks, maximizing their utility. The explosive growth in Ethereum liquid restaking protocols is positive for ETH because liquid restaking protocols require users to stake ETH as the base asset, driving greater demand for Ethereum. This reduces the circulating supply, which exerts upward pressure on its price.

As more capital flows into liquid restaking protocols, Ethereum’s ecosystem grows more robust, attracting developers and projects. This growth ceirtinly fuels positive sentiment around the Ethereum blockchain and its native currency.

Rating: 9.5/10
Supply: 118,780,000 / 200,000,000
Release date: August 1, 2014

Description: Discover Ether and be part of the cryptocurrency revolution.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

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Ethereum could outperform Bitcoin in upcoming weeks

Historically, liquid financial markets for tradable assets like stocks and cryptocurrencies often experience a year-end rally, commonly referred to as the “Santa Claus Rally,” which sometimes extends into January. This period is frequently one of the most profitable times of the year, as these assets tend to record their strongest gains on exchange markets.

So far, this pattern has held up in the experience of Bitcoin and the cryptocurrency market, with Bitcoin and other cryptos like Ethereum making big leaps up the chart in December and January. During the last Santa Claus rally following the Bitcoin halving in 2020-2021—a period similar to the current December to January window for 2024-2025—ETH significantly outperformed BTC in price gains.

On December 21, 2022, Bitcoin’s price was $24,059, but by January 18, 2023, it had surged to $37,299—an increase of 55%. In contrast, Ethereum started at $646 on December 21, 2022, and soared to $1,259 by January 18, 2023, marking a 95% rally. Investors should also consider that Bitcoin has already blown past its previous all-time high prices. Ethereum has yet to mark its past record high on this cycle and that means alt season is still ahead of us if markets retrace past crypto trends.

Ethereum’s fundamentals remain incredibly strong, bolstered by ongoing network upgrades, such as the transition to proof-of-stake and the growing adoption of decentralized finance (DeFi) and liquid restaking protocols. As Ethereum continues to evolve and strengthen its position within the broader crypto landscape, many investors and analysts remain optimistic that Ether will follow Bitcoin’s lead and set new records in the near future.

Technical analysis for Ethereum (ETH)

Ether (ETH) advanced from $2,471 to $4,093 since November 04, 2024, and the current price stands at $3,898. A break above the $4,500 level would indicate that ETH could probably test the price level at $5,000. As long the price of Ether (ETH) is above the line that I marked on the chart below, there is no risk of a bigger sell-off.

Important support & resistance levels for Ethereum (ETH)

On this chart (the period from March 2024), I marked important support and resistance levels that can help traders understand where the price could move. ETH is currently trading below its recent highs, but if the price jumps above $4,500, the next target could be resistance at $5,000. The important support level is $3,500 and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $3,000. If the price drops below $3,000, which represents another important support level, the next target could be $2,500 or even below.

What speaks for the rise in the Ethereum (ETH) price

Ether (ETH) continues to gain support as Bitcoin’s price rises above $103,000, with many crypto analysts attributing this positive market trend to Donald Trump’s decisive victory in the U.S. presidential election.

The rise in Ether (ETH) price can also be attributed to some other factors, including the ongoing development and implementation of network upgrades. Additionally, the exponential growth of decentralized finance (DeFi) applications, many of which are built on the Ethereum network, has played a significant role in driving price increases.

What indicates a downfall for Ethereum (ETH)

A shift in market sentiment towards pessimism, influenced by macroeconomic factors, geopolitical events, or negative news about Ethereum or the broader cryptocurrency market, can lead to a price decline.

The rise of competing blockchain platforms (e.g., Binance Smart Chain, Solana, Cardano) that offer similar or superior features (e.g., higher scalability, lower fees) can divert users and developers away from Ethereum. Ethereum has an important support level at $3,500, and a break below this level would indicate that ETH could probably test the next psychological support level which stands at $3,000.

What do analysts and experts say?

Crypto analysts say that Ethereum could outperform Bitcoin in upcoming weeks and while Ether has seen significant growth and has maintained a strong performance, it hasn’t yet reached the price levels it achieved during its peak in late 2021.

Ethereum’s fundamentals remain exceptionally strong, supported by continuous network upgrades like the transition to proof-of-stake and the increasing adoption of decentralized finance (DeFi) and liquid restaking protocols. These developments position Ethereum to further solidify its role within the broader crypto ecosystem.

As the network continues to evolve and mature, many investors and analysts are confident that Ether will eventually follow Bitcoin’s path, breaking its previous records and reaching new all-time highs in the near future. Crypto analysts also agree that while Ethereum has strong fundamentals and a robust ecosystem, it is not immune to various risks that can lead to a decline in its price.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.