{"id":389495,"date":"2022-01-04T19:24:00","date_gmt":"2022-01-04T16:24:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-ethereum-can-reach-5000-in-q1\/"},"modified":"2022-01-04T19:24:00","modified_gmt":"2022-01-04T16:24:00","slug":"3-reasons-why-ethereum-can-reach-5000-in-q1","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-ethereum-can-reach-5000-in-q1\/","title":{"rendered":"# 3 reasons why Ethereum can reach $5,000 in Q1"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bbffb0cbf8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bbffb0cbf8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-ethereum-can-reach-5000-in-q1\/#ETH_price_painting_falling_wedge\" >ETH price painting falling wedge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-ethereum-can-reach-5000-in-q1\/#ETH_deposits_to_exchanges_drop\" >ETH deposits to exchanges drop<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-ethereum-can-reach-5000-in-q1\/#Cheap_money_here_to_stay\" >Cheap money here to stay?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Ethereum can reach $5,000 in Q1 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ethereum&#8217;s native token Ether (ETH) has plunged by more than 20% after establishing its record high at around $4,867 on Nov. 10, 2021. Nonetheless, the sharp price pullback does not mean ETH can&#8217;t pursue a new record high in the next few months, as several widely-tracked technical, macroeconomic and on-chain indicators suggest.\u00a0<\/p>\n<p>One of these indicators envisions\u00a0Ether&#8217;s price reaching $5,000 in the first quarter of 2022 while others look are poised to support the bullish bias.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ETH_price_painting_falling_wedge\"><\/span>ETH price painting falling wedge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether&#8217;s recent price correction is painting a potential classic bullish reversal pattern known as &#8220;falling wedge.&#8221;<\/p>\n<p>In detail, falling wedges begin wide at the top but contract as the price moves lower. As a result, the price action forms a conical shape that trends lower as the reaction highs and reaction lows converge. Traders realize a bullish bias only after the price decisively breaks above the wedge&#8217;s resistance.<\/p>\n<p>As a result, expectations remain high that the ETH price would break above its falling wedge resistance in the coming sessions. In doing so, it would rise by as much as the maximum distance between the wedge&#8217;s upper and lower trendline when measured from the breakout point.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Literally unchanged&#8230;<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> is going to $5k <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/11mAQiJxJS\">pic.twitter.com\/11mAQiJxJS<\/a><\/p>\n<p>\u2014 Kong Trading (@KongBTC) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/KongBTC\/status\/1478240723375951873?ref_src=twsrc%5Etfw\">January 4, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>That roughly puts the price target for Ether at $5,000.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ETH_deposits_to_exchanges_drop\"><\/span>ETH deposits to exchanges drop<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Traders typically move their tokens to exchanges when they intend to sell\/trade them for either fiat, stablecoins or other cryptocurrencies. <\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly, a higher number of transactions made to crypto trading platforms reflects a high selling sentiment in the market. Conversely, if the token transactions plunge, they show a strong holding sentiment in the market.<\/p>\n<p>Data collected by blockchain analytics service Glassnode show that the number of on-chain Ether deposits to exchanges dropped to its 23-month low on Jan. 3.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/98d27775-7761-4144-aaac-62a7506ae439.jpeg\"><figcaption style=\"text-align: center;\"><em>ETH number of exchange deposits. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Additionally, another Glassnode metric that tracks the number of Ether addresses sending ETH to exchanges also reported declines over the last 30 days, the same period that saw the ETH\/USD rate dropping nearly 11%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/3e7733eb-e18d-4a78-95bc-bceb68999628.jpeg\"><figcaption style=\"text-align: center;\"><em>Ethereum number of addresses sending to exchanges. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Meanwhile, the total Ether balance across all the exchanges has been in a downtrend since Aug. 2020, suggesting that ETH investors are in it for the long haul\u00a0as its price rose from nearly $400 to a little over $3,800 in the same period.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/a9c00cea-78d8-4f40-8259-652eefdbde4e.png\"><figcaption style=\"text-align: center;\"><em>Ethereum balance on exchanges. Source: Glassnode<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Cheap_money_here_to_stay\"><\/span>Cheap money here to stay?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether&#8217;s $1,000-plus plunge from Nov. 2021 to date came majorly in the wake of the Federal Reserve&#8217;s hawkish turn.<\/p>\n<p>The U.S. central bank decided to accelerate the unwinding of its $120 billion a month asset purchase program, followed by three rate hikes in 2022 from its near-zero levels, to stem rising inflation. Its loose monetary policy was one of the primary catalysts behind similar price rallies across Ethereum, Bitcoin (BTC) and other crypto markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/f9956a30-a30a-4865-b273-576544e4a4fc.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD and BTC\/USD weekly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>But the Fed&#8217;s efforts to tame inflation from its current 6.8% level with three rate hikes may not impact Bitcoin and Ethereum prices in the long run. For example, Antoni Trenchev, managing partner of crypto lender Nexo believes that cheap money is here to stay.<\/p>\n<p> &#8220;The No. 1 influencing factor for Bitcoin and cryptocurrencies in 2022 is central bank policy,\u201d he told Bloomberg. He added:<\/p>\n<blockquote><p>\u201cCheap money is here to stay, which has huge implications for crypto. The Fed doesn\u2019t have the stomach or backbone to withstand a 10%\u201320% collapse in the stock market, along with an adverse reaction in the bond market.\u201d<\/p><\/blockquote>\n<p>Hungarian-born billionaire Thomas Peterffy also\u00a0said\u00a0that investors should allocate at least 2%\u20133% of their net portfolio to cryptocurrencies like BTC and ETH in case the fiat money &#8220;goes to hell.&#8221;\u00a0<\/p>\n<p><strong><em>Related:\u00a0More billionaires turning to crypto on fiat inflation fears<\/em><\/strong><\/p>\n<p>Additionally, Bridgewater Associates founder Ray Dalio revealed that he has been holding BTC and ETH in his portfolio against the risks of cash devaluation led by higher inflation.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-ethereum-can-reach-5-000-in-q1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Ethereum can reach $5,000 in Q1 &#8221; Ethereum&#8217;s native token Ether (ETH) has plunged by more than 20% after establishing its record high at around $4,867 on Nov. 10, 2021. Nonetheless, the sharp price pullback does not mean ETH can&#8217;t pursue a new record high in the next few months, as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":389496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZTdmM2EyZDYtMjdlNi00YjcwLTg3M2ItNmZkYjI5NzU4NDY1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[81262,82402,74891,74938,74939,75150,112089,78261,70550,70551,73785],"class_list":["post-389495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptomarket","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-market-analysis","tag-market-update","tag-quantitative-easing","tag-tech-analysis","tag-federal-reserve","tag-inflation","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/389495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=389495"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/389495\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/389496"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=389495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=389495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=389495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}