Increasing Institutional Interest in Ethereum Indicates a Possible $5,000 Price Target Based on Technical Analysis
Crypto analyst Jelle has forecasted that Ethereum could hit $5,000 by March.
The analyst referenced a well-known technical pattern and emphasized significant institutional investments. This prediction aligns with ETH’s impressive 51.9% growth over the last year.
Market data indicates that Ethereum saw a 2.4% increase in value over the past week, although it faced a 1.9% decline in the last 24 hours. The asset’s performance over the previous month reflects a slight 0.4% decrease, suggesting a consolidation phase ahead of a potential breakout.
In his latest market review, Jelle pointed out a bullish pennant formation that has been developing for almost four years. This technical arrangement, characterized by converging trendlines following a significant upward movement, usually signals substantial price increases when confirmed by heightened buying activity.
Nearly 4 years inside this massive bullish pennant and the local lows have all been swept.
US Gov talking crypto stockpile, while the president keeps buying $ETH heavily.
They know something we don’t.
Time for ETH to step back into the spotlights. pic.twitter.com/0BK0TdcXdS
— Jelle (@CryptoJelleNL) January 24, 2025
Observers in the market have noted that wallets allegedly linked to Trump’s inner circle have been accumulating Ethereum, coinciding with broader discussions about government cryptocurrency stockpiling. This institutional interest further strengthens the foundational support for the technical analysis.
Despite recent fluctuations in the market, the cryptocurrency’s price action has shown resilience in maintaining its yearly gains. While short-term trends indicate some uncertainty due to the 24-hour decline, the long-term uptrend remains robust, as demonstrated by the strong annual performance.
Technical analysts stress that the completion of local low sweeps serves as another bullish sign, suggesting that the market has eliminated weaker positions in anticipation of a potential rise.
Nonetheless, ETH is still down more than 31% since it reached its all-time high in November 2021. While BTC has recently surpassed its ATH multiple times, ETH has yet to display comparable strength.
