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Ethereum price has fallen sharply in the past few days after finding significant resistance at $4,000.
Ethereum (Ethereum) traded at $3,340 on Monday as cryptocurrencies stabilized. This was slightly higher than last week’s low of $3,100.
Seasonal data suggests that the Ethereum price may rebound sharply in the first quarter of 2025. Queen GlassETH has delivered positive returns in all but the first two quarters since 2017. Its best performance was in 2017, when it jumped by 518%, followed by 202.1 when it rose by 160%.
The average first-quarter returns since 2017 have been 92%, making it the best period of the year. The second quarter is his best quarter, followed by the fourth quarter. The third quarter is usually the worst period for cryptocurrencies, most likely due to the summer season.
More data shows that the price of Ethereum is rising in the first four months after the US elections. Its average returns in the first four months of Donald Trump’s administration were about 90%. Likewise, in 2021, its four-month return after Biden became president was $41.
To be clear, seasonal data is not always a good indicator of what to expect. In her case, Ethereum price dropped in January 2024, 2022 and 2019, and this could be one of them.
On the positive side, Ethereum price has some strong fundamentals. ETH ETFs The country is witnessing strong accumulations by investors, as their cumulative inflows have risen to more than $2.33 billion.
The Ethereum network has evolved $2.44 billion in fees this year, making it the second most profitable network after Tether. The network remains dominant in the DeFi industry, with a total value of $66 billion, higher than most of the 10 chains combined.
Another potential catalyst for the Ethereum price is that futures open interest has fallen to $23 billion from its year-to-date high of $28 billion. The last time open interest was this low was in November, and the coin rebounded back to $4,000.
Technical analysis of Ethereum price
The weekly chart shows that Ethereum has strong technicals as it remained above the uptrend line connecting the lowest volatility since May 2022. It also moved slightly above the 50-week moving average and the first support of the Andrew Pitchfork tool.
Therefore, the Ethereum price is likely to bounce back in the next few months. A complete bullish breakout will be confirmed if the coin rises above the level Triple top chart pattern at $4,027. A move above this level would indicate further gains to the all-time high of $4,860.
