Can ETH Price Reach New ATH?
The price of Ethereum (ETH) has soared 33% over the past 30 days, fueling speculation that the cryptocurrency could reach new highs. While this seems unlikely as the month comes to a close, analysts’ predictions for Ethereum in December could lead to more gains for holders.
BeInCrypto explores these predictions, revealing the key drivers behind the bullish sentiment surrounding ETH.
Analysts are bullish on Ethereum, but with conditions
Juan Pellicer, senior researcher at IntoTheBlock, said that Ethereum’s December predictions could see the cryptocurrency hitting all-time highs. However, Pellicer believes that this will only become a reality if ETH can break through $4,000.
In addition to this, the researchers mentioned that in this case, ETH’s performance may closely track the performance of Bitcoin, indicating that large holders accumulation Retail participation could be the key to realizing potential.
“Ethereum’s outlook is closely tied to Bitcoin’s positive trajectory, with huge potential for a year-end rebound that could gather even more momentum if it manages to break above the previous $4,000 level. Our On-chain analysis The trend of accumulation of holdings by major shareholders is being studied, which indicates that both institutional and retail investors are making spot purchases. ” Pellicer told BeInCrypto.
But as of this writing, net flows from large Ethereum holders have decreased, suggesting whales are no longer accumulating as much as they were a few days ago. If this continues, the price of ETH may recover challenging Next month it reaches $4,000.
On the other hand, this could change if these holders start accumulating again, Ethereum December prophecy It could end up being bullish.
For Santiment principal analyst Brian Quinlivan, a key metric to monitor is Ethereum’s funding rates on BitMex and Binance. Funding rate shows whether bulls (buyers) are dominant shorts (Seller) in derivatives markets.
When it is positive, bulls have the upper hand. But if it is negative, go short. As of this writing, funding rates on both exchanges are very high. This shows that bulls are in control and most traders expect ETH price to rise in December.
However, Quinlivan believes that the indicator needs to remain relatively neutral so that the price of Ethereum can catch up with BTC.
“But on these top exchanges, the bulls dominate the shorts, which means a big rally here will overcome a lot of difficulties. Historically, we need funding rates to remain neutral, or even lean towards short To justify significant increases in the future,” the analyst told BeInCrypto.
Another analyst who spoke to BeInCrypto about ETH’s potential next month was Julio Moreno, head of research at CryptoQuant. Using the Market Value to Realized Value (MVRV) ratio, Moreno said ETH is approaching undervaluation relative to BTC.
The MVRV ratio is a key metric that shows whether an asset is undervalued or overvalued.
Based on the chart above and historical data, Moreno recommends: ETH may soon be replicated The price action since February 2020 marks the beginning of its rise to new all-time highs in 2021.
“Currently, the relative valuation of ETH relative to Bitcoin (purple line in the chart) is approaching the extremely undervalued zone (green zone). The last time ETH was this undervalued relative to Bitcoin was in February 2020.” Mo Mo Leno said in a conversation with BeInCrypto.
ETH Price Prediction: 4,000 or More
From a technical perspective, Ethereum has taken shape Bull flag on the daily chart. The bull flag pattern is characterized by a sharp rise, often called a “flagpole,” followed by a tight rectangular consolidation phase, called a “flag.”
This pattern often signals an upcoming breakout, during which price takes a break and gathers strength before moving higher. As shown above, the price of ETH has broken out of the consolidation phase.
While it faces resistance around $3,600, it is likely to rebound again. If This Happens, Ethereum December Forecast May Come value rises above $4,000. However, if the cryptocurrency comes under selling pressure, the trend could change and ETH could drop to $3,003.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
