Here’s why Ethereum Price Could Suddenly Skyrocket to $7,000

With Donald Trump’s inauguration hours away, Ethereum price is showing strength after rallying No data found for ethereum on 8 minutes ago% today. In addition to the aforementioned event, multiple outlooks suggest that ETH will soon witness an up-only rally. One on-chain metric shows that the price could skyrocket soon and hit $7,000 in an act of reversing to the mean.

Why Ethereum Price Could Skyrocket From No data found for ethereum on 8 minutes ago to $7,000 soon

Ethereum price today hit a daily high of No data found for ethereum on 8 minutes ago after No data found for ethereum on 8 minutes ago% move on January 20. Currently ETH auctions at No data found for ethereum on 8 minutes ago as of No data found for ethereum on 8 minutes ago.

*Ethereum price updated as of No data found for ethereum on 8 minutes ago.

Many investors are looking down on ETH and even losing hope as it remains undisturbed and below $4,000, while other altcoins are going parabolic and registering impressive gains. However, the lackluster performance streak that spanned all through 2024 is unlikely to last in 2025 for a few reasons. In fact, Glassnode’s Ethereum MVRV pricing bands indicator hints that there could be repricing that propels ETH’s value to roughly $7,000.

The indicator shows that the price trades above the 3.2 MVRV band at roughly $7,000, the value of this is 3.2 times the realized price (RP). While every other altcoin has shot up, ETH continues to trade below the 2.4 MVRV band indicating how undervalued the crypto is.

The efficient market hypothesis states that assets or markets are unlikely to remain underpriced long. Hence, Ethereum price forecast adds that a repricing event could send ETH to $7,000.

Ethereum MVRV Pricing Bands

Whales Continue to Accumulate

Ethereum whales have bought 300,000 ETH in just 20 days. This uptrend in their holdings since the start of 2025 shows their confidence despite the boring price performance witnessed through 2024 and in the first few days of the new year. This outlook hints at a bright future ahead for Ethereum and its ecosystem for the rest of 2025.

Whale Accumulate 300,000 ETH in 20 Days

Etheruem Foundations Sells Again: Short-term Outlook Bearish?

According to on-chain data, the Ethereum Foundation has started selling ETH again. This is a pattern where the entity behind the second largest crypto sells large quantities of ether in batches of 100 tokens. This development takes place as Bitcoin hits a new ATH, so it is unlikely this move could dampen the buying pressure due to capital rotation from meme coins to top altcoins.

Ethereum Foundation Selling ETH

Ethereum Price Analysis Hints Buying Opportunity Around the Corner

Ethereum price is setting up a falling wedge, a bullish pattern. However, the recent uptick in bitcoin has prevented ETH from sliding into the $3,057 to $3,132 support zone. Regardless, investors need to keep a close eye on this area. A dip into this area presents a good buying opportunity before ETH skyrockets.

With whales accumulating large quantities of ETH and Trump’s inauguration, Ethereum price could scale higher along with altcoins during the highly anticipated alt season.

Another outlook could see the price breaking out of the falling wedge before dipping lower. In such a case, a decisive daily candlestick close above $3,592 will confirm a breakout. The setup forecasts a 17% move to $4,000, obtained by adding the distance between the first swing high and swing low to the breakout point.

ETH/USDT 1-day chart

Ethereum price is poised for a significant surge, potentially reaching $7,000, driven by a combination of factors, including Donald Trump’s inauguration, whale accumulation, and a bullish falling wedge pattern.

The post Here’s why Ethereum Price Could Suddenly Skyrocket to $7,000 appeared first on CoinGape.