Why is Ethereum (ETH) price up today?

Ethereum’s native token, Ether is up 7.51% over the last few days, reaching an intraday high of $3,421 on Jan. 24. It also recovered back above its 100-day SMA level on the daily chart after breaking below it last week.

Let’s look closer at the factors driving Ethereum price up today.

Ether price move mirrors marketwide recovery

ETH’s price rise on Jan. 23 mirrors the bullish sentiment in the market that has seen crypto prices recover across the board.

Bitcoin has risen more than 2.6% over the last 24 hours to trade above $105,000. Other major altcoins such as XRP and Solana rose by 1% and 6%, respectively.

The largest gains among the top-cap cryptocurrencies were posted by the 11th-ranked Chainlink , which is up 8% on the day.

Similarly, the total crypto market cap has increased by 3% over the last 24 hours to rest at $3.63 trillion at the time of publication.

This performance comes from general positive sentiment in the cryptocurrency market after the US President finally issued a crypto-related executive order on Jan. 23 aimed at “strengthening American leadership in digital financial technology.”

The order states:

“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership.”

Firstly, it establishes a working group to propose new digital asset regulations and explore the creation of a national “digital asset stockpile.”

It has also paved the way for the Securities and Exchange Commission to cancel the controversial crypto accounting rule SAB 121 that required financial firms holding crypto to record them as liabilities on their balance sheets.

The immediate effect of this news has been a boost in market confidence, as investors interpret this move as a signal of government support for cryptocurrencies, including Ethereum. 

“Today, President Trump officially signed the first pro-crypto Executive Orders in US history,” said capital markets commentator The Kobeissi Letter, adding it fulfills some of the promises Trump made while on the campaign trail.

Trump’s executive order is “game-changing,” said Danrocky, an advocate of the Web3 industry, adding that it will completely reshape the US crypto industry. 

“This isn’t just another regulation – it’s a complete reversal protecting people in the US, fostering financial freedom while positioning America to dominate the digital economy.”

Ether price boosted by high ETF inflows

Adding to Ether’s bullish momentum on Jan. 24 is the significant inflows into US-based spot Ethereum exchange-traded funds (ETFs) over the last couple of weeks. 

These investment products have recorded positive inflows for six straight days totaling $396.5 million, according to data from Farside Investors. 

BlackRock’s ETHA fund, which witnessed net inflows since Jan. 6, was the primary driver behind Ethereum ETF capital positive flows, with a total of $287.7 million in inflows between Jan. 13 and Jan. 23. 

The ETF landscape has been expanding along with expectations that these funds will attract substantial investments in 2025, especially if regulatory changes allow for staking rewards.

How high can ETH price go?

Market analysts have turned increasingly optimistic about Ethereum’s price trajectory. Predictions suggest that Ether could reach as high as $7,000 in the first quarter of 2025, fueled by Trump’s crypto-friendly administration and fundamental growth in the Ethereum ecosystem.

Pseudonymous crypto analyst Best-analysts said that Ether’s price could break out from a bull flag pattern to reach $3,850 and $4,840. 

From a technical perspective, ETH is trading above a strong support zone stretching from $3,200 to $3,390. Data from IntoTheBlock shows that the immediate support around $3,340 is within this price range, where roughly 4.09 million ETH were previously bought by about 5.73 million addresses

The  ETH/USD daily chart below shows that the price has been oscillating around this demand zone since Jan. 8, suggesting that the level is important for both buyers and sellers.

If the bulls manage to hold above this level, the price should climb above the 50-day simple moving average (SMA) at $3,502. A key level to watch on the upside is the Dec. 16, 2024, range high at $4,109. 

On the other hand, sellers could pull the price below this level with the 100-day SMA at $3,260, where the first major support will likely be. More defense lines could appear at the psychological level of $3,000 and the 200-day SMA at $ 2,986.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.