Ethereum’s native token, EtherETH$3,987.01has maintained a slow and steady rise over the past three weeks, rising 28% since Nov. 18. Despite a flash spike down to $3,615 on Dec. 5, the altcoin has sprung back and now trades above $4,000.

Its yearly high value remains at $4,098, and the trend continues to form a higher high and higher low trend in the 4-hour chart. The relative strength index, or RSI, also looks healthy, where the indicator is currently below the overbought region.

Ethereum hints “paradigm shift” above $4,000

Ethereum Nears $4,000 Milestone as Analyst Predicts Bullish Outlook for 2025

Ethereum, the world’s second-largest cryptocurrency by market capitalization, is on the verge of surpassing the $4,000 mark, fueling optimism among investors and analysts. According to “Venture Founder,” a well-known but anonymous crypto analyst, Ethereum is positioned for a significant breakout as it consolidates within a three-year ascending triangle pattern, signaling the potential for a “paradigm shift” in the coming years.

The ascending triangle pattern, a bullish technical formation, has historically indicated strong upward momentum for assets nearing its apex. Venture Founder suggests that this consolidation phase is laying the groundwork for Ethereum to achieve unprecedented highs by 2025.

“Ethereum’s price action is displaying classic signs of an impending breakout,” the analyst stated. “The long-term structure suggests the possibility of a dramatic move that could redefine market expectations.”

As Ethereum gains momentum, factors such as increasing adoption of decentralized applications (dApps), the expanding influence of Ethereum’s Layer 2 scaling solutions, and its role as a cornerstone of decentralized finance (DeFi) are likely to contribute to its bullish trajectory.

While the cryptocurrency market remains volatile, Ethereum’s steady rise has reignited conversations about its long-term potential. Investors are closely watching its next moves, as a break above the $4,000 resistance could trigger a broader rally in the crypto space.

With 2025 in sight, Ethereum’s role in the evolving blockchain ecosystem continues to solidify, giving credence to predictions of a transformative new era for the cryptocurrency.

The trader said,

“Ethereum likely to repeat this impulsive breakout it did after between 2016-2017 to shoot to new ATH. Price Target: $15,937 by May 2025”.

A $16,000 ETH would take the altcoin’s total market cap above $1 trillion for the first time in history.

However, the analyst noted that Ether must close its weekly candle with $3,800 at support, increasing the probability of ETH retesting its all-time high at $4,878, or, its immediate price target.

Similarly, Honey, an independent crypto trader, indicated that Ether’s “golden cross” on the 1-day chart is breaking out according to previous bull markets. The trader said that ETH is at the beginning stages of a “giga pump” that will take the altcoin to new all-time highs.

Related: Anchorage Digital to support liquid Ether staking

Ethereum spot ETFs sustain positive momentum

After being overshadowed by spot BTC ETF’s performance in 2024, spot ETH ETFs are beginning to gain institutions’ interest toward the end of the year. Cointelegraph reported that the altcoins’ financial instrument witnessed its largest daily inflows since its launch, with $428.5 million.

Spot Ether ETFs have witnessed more than $1.3 billion in inflows since Nov. 18, with BlackRock’s iShares Ethereum Trust leading the charge with over $500 million in inflows this week, taking its total inflows to $2.6 billion.

Alongside smart money interest and positive price action, Ethereum’s DeFi metrics are also improving. Data from DefiLlama highlighted that total value locked on Ethereum’s chain reached a new yearly high of $77 billion on Dec. 5.