Ethereum Bulls Eye Price Surge Despite Recent Dip

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has several potential catalysts that could drive its price higher this year, according to Ki Young Ju, the CEO of digital asset analytics platform CryptoQuant.

Ju notes that there has been no significant sell pressure following the record-breaking Bybit hack last week. On-chain and market data remain neutral, with exchange selling taking time and over-the-counter (OTC) offloads barely affecting the price.

One bullish factor is Ethereum's dominance in the stablecoin market. As of now, Ethereum holds 56% of the stablecoin market cap. With former President Trump's easing of crypto regulations, more firms may adopt ETH-based stablecoins and smart contracts in the future, potentially boosting Ethereum's price.

Another positive sign is the approval and activation of Ethereum-based spot exchange-traded funds (ETFs) in the US. Regulatory tailwinds could trigger a 'Large Cap ETF altseason,' which could benefit Ethereum this year.

Additionally, whales have been accumulating Ethereum, another potential bullish sign. Wallets holding between 10,000 and 100,000 ETH have seen a 24% increase over the past year, mainly from wallets under 1,000 ETH. The current price is nearing the cost basis of accumulating addresses, indicating strong support at these levels.

At the time of writing, Ethereum is trading at $2,424, down nearly 9% in the past 24 hours and nearly 8% in the past seven days. Despite the recent price decline, Ethereum's fundamentals remain strong, and the aforementioned catalysts could drive its price higher in the coming months.