Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms

Ethereum price rose for five consecutive days, reaching its highest level since Oct. 13. This recovery mirrored the rebound among other altcoins after the encouraging US inflation report. Polymarket traders are betting that ETH price will hit $5,000 this year.

Polymarket Traders See Ethereum Price Hitting $5,000

Ethereum price has been on a strong rally this year, soaring from a low of $1,388 in April to a record high of $4,953 in August. While the coin has moved into a correction, traders on Polymarket believe that it will bounce back by 20% and hit the resistance at $5,000.

Odds of ETH price hitting $5k before the year ends have jumped by 10% in the last 24 hours to 53%. At the same time, the odds of it jumping to $6000 have moved to 27%.

Several potential catalysts may push it to that target. For one, demand from institutional investors has continued rising this year, with the cumulative ETF inflows rising to $14.35 billion. These funds now hold over $26 billion in assets, which is equivalent to 5.55% of Ethereum’s market cap. 

The other key catalyst is that the supply of ETH on exchanges has continued falling this year. There are now 15.8 million coins on exchanges, down from 27 million in 2023. The chart below shows that there is an inverse relation between its price and the exchange supplies. 

Additionally, companies are continuing to buy Ethereum for their treasuries. BitMine owns 3.236 million ETH worth over $13.4 billion. SharpLink has bought 859,853 coins worth $3.58 billion, while Bit Digital has coins valued at over $626 million. 

Other top companies with Ethereum in their treasuries are ETHZilla, BTCS, Fundamental Global, and The Ether Machine. All these companies hold coins worth almost $20 billion.

ETH Price Technical Analysis Points to More Gains

The daily timeframe chart shows that the ETH price has remained under pressure in the past few months. It has remained above the 100-day Exponential Moving Average (EMA).

The two lines of the MACD indicator have formed a bullish crossover pattern, while the Relative Strength Index (RSI) has jumped above the neutral line of 50.

Most importantly, the token has formed a bullish flag pattern, which is made up of a vertical line and a descending channel, resembling a raised flag. 

Therefore, the token will likely have a bullish breakout, potentially to the psychological level at $5,000, which aligns with the ultimate resistance level of the Murrey Math Lines.

On the other hand, a drop below the key support at $3,628, the lower side of the flag will invalidate the bullish ETH price forecast for 2025 and point to more downside in the near term.

Such a drop would possibly take it to the psychological level at $3,000, which is a few points below the strong pivot reverse point of the Murrey Math Lines tool.