Ethereum kicked off 2024 on a bullish trend despite recent corrections. This article explores the current market state and forecasts for 2025.
Current Market Movements of Ethereum
Ethereum experienced an 8.3% downturn on Tuesday, likely due to a liquidity shake. This move undid some previous gains. Whale activity showed outflows from late December into the first week of January despite price increases.
Liquidation in Ethereum Trading
Before the rally, ETH prices consolidated in the last December week, causing uncertainty. The subsequent rise boosted investor confidence but also triggered long liquidations. The sale pressure led to $166.45 million in long liquidations over the last two days. Such events are common during periods of high leverage demand. Ethereum's leverage ratio hit a new ATH last Friday, followed by a spike in long liquidations.
Ethereum's Future: Forecasts and Network Updates
Ethereum started the year bullish, but whales chose to cash out. Inflows peaked at 519,620 ETH on January 7, indicating higher demand. Network upgrade 'Pectra' is expected to improve features and increase staking by raising the validator cap to 2048 ETH.
Ethereum's prospects remain positive for 2025, driven by potential network changes and anticipated regulatory shifts in the U.S.
