Ethereum

The crypto market is back in the green, with Ethereum rallying ahead of its major Fusaka upgrade and Sui leading the top 100 gains after a significant price surge.

The crypto market is in full rally mode, with Bitcoin climbing 8% and numerous altcoins posting even larger gains, some exceeding 30%. The surge marks a strong reversal from recent sharp price declines.

Arthur Hayes, BitMEX founder, predicts that most Layer-1 blockchains will fail, leaving only Ethereum and Solana as viable networks. He also forecasts the continuation of the bull market, driven by U.S. political factors, and a new trend towards privacy-focused cryptocurrencies in the coming year.

Ethereum’s price has fallen below the critical $3,000 support level, risking a further decline towards $2,850. However, the MVRV Z-Score indicator suggests the asset may be undervalued and could be nearing a bottom.

In November, inflows into companies holding digital asset treasuries plummeted to a yearly low of $1.32 billion. Consequently, the stock prices of major players like Strategy (MSTR) and Metaplanet have suffered dramatic declines, with MSTR down over 60% from its July peak.

After a sharp correction, the crypto market rebounds with bitcoin leading the recovery. Analysts remain optimistic, with some predicting new all-time highs by January.

Despite a significant price drop, Fundstrat’s Tom Lee predicts Bitcoin will hit a new all-time high by the end of January. He cites a recovering stock market and a potentially less aggressive Fed as key drivers, while his firm, Bitmine, continues to aggressively accumulate Ethereum.

Ethereum’s price has fallen 6% in the past 24 hours, and an expert warns of a potential deeper crash due to a bearish pattern. Analyst Ali Martinez predicts further declines to $2,250, $1,550, or even $1,080.

The crypto market started December with heavy losses, with Bitcoin dropping over 7%. The downturn is largely attributed to rising interest rates in Japan, which is prompting the unwinding of the yen carry trade, leading to widespread sell-offs in risk assets.

After four consecutive weeks of outflows, crypto investment products returned to form with nearly $1.07 billion in inflows last week, led by Bitcoin and XRP which recorded its strongest week ever.