Ethereum aims for $20K despite recent 11% slump
Ethereum (CRYPTO:ETH) advocates remain optimistic about the potential for significant price increases in 2025, despite the asset's recent downturn.
The price of Ethereum has dropped over 11% in the past week, with inflationary pressures causing the ETH supply to return to pre-merge levels due to low demand.
However, many investors are holding onto hope that this year will bring a new all-time high for Ethereum.
On January 12, crypto trader ‘Mister Crypto’ expressed confidence while sharing a chart that indicated similar patterns from the previous year that preceded a price surge.
“Ethereum is about to send hard,” the trader stated.
“Would you be surprised if ETH hit $20,000 this cycle?” another commentator, ‘CRYPTO₿IRB,’ posed a question to their followers.
This statement elicited mixed reactions among the community.
YouTuber ‘Crypto Rover’ suggested that a breakout could push Ethereum's price to $8,000, while analyst ‘Crypto Caesar’ emphasised the need for the ETH/BTC ratio to bounce back, noting it is currently at a three-year low of 0.034.
Concerns have arisen regarding Ethereum's return to an inflationary supply since April 2024.
Over the past nine months, the supply has increased by 0.35%, reaching approximately 120.4 million ETH.
“The supply of ETH will likely reach the pre-merge supply within the next few weeks,” noted Benjamin Cowen, founder of ITC, as demand remains low.
Despite these inflationary concerns, Ethereum's price outlook remains uncertain.
As of January 13, Ethereum traded under $3,200 after experiencing a nearly 15% drop from its recent high of just over $3,700.
To avoid a more significant collapse below $3,000, it is crucial for Ethereum to maintain its current levels in the coming days.
At the time of reporting, the Ethereum (ETH) price was $3,137.28.
