Ethereum (ETH) remains under pressure, with a decline of more than 11% in the last week . Despite rising supply inflation and the price drop below $3,100, optimists continue to speculate on a rise towards $20,000 in 2025, partly by comparing it to previous price patterns. However, the market remains divided on Ethereum’s short-term recovery.
Ethereum under pressure from inflation and low demand
ETH has fallen significantly over the past week, partly due to an increase in supply. Since April 2024, the total supply has increased by 0.35%, bringing the current total supply to 120.4 million ETH, according to data from Ultrasound.Money. Analyst Benjamin Cowen points out that the supply could reach pre-merge levels in 2022 within a few weeks, further undermining ETH deflationary narrative.
“Demand for ETH is currently so low that supply has been inflationary for 10 months already,” Cowen said on Jan. 13. This indicates continued weakness in network activity, which is putting pressure on the price.
Optimism remains despite price decline
Despite the recent drop, analysts and traders are optimistic. Crypto analyst “Mister Crypto” shared a similar price model to the one from last year, suggesting that ETH is ready for a big move higher. On X, he said:
“Ethereum is about to go up big. I’m accumulating right now.”
Other prominent voices in the crypto world, such as “CRYPTO₿IRB,” are also speculating about a possible price increase. In a recent post, he asked his 698,000 followers: “Would you be surprised if ETH hits $20,000 this cycle?” However, reactions to these predictions are divided.
Would you be surprised if $ETH hit $20,000 this cycle? pic.twitter.com/6s9yZRVLLh
— CRYPTO₿IRB (@crypto_birb) January 13, 2025
Meanwhile, the ETH/BTC ratio is at a three-year low, leading some to speculate about a possible “altseason” in which altcoins like Ethereum outperform Bitcoin.
Price forecasts: critical levels remain important
ETH has been consolidating around $3,200 for the past few days, but further declines towards $3,000 remain a real possibility. The current price level is crucial to prevent another breakdown. Traders are also closely monitoring broader market developments as these can greatly influence ETH’s upcoming moves.
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