Why Ethereum Price Could Retest $4,000 Before 2024 Closes
Since Ethereum (ETH) price fell below $4,000 on December 17, it has struggled to regain that level, fueling speculation that ETH may not return to the area before the end of 2024.
However, a 5% price increase in the past 24 hours suggests that market sentiment may be changing. For Ethereum to retest the $4,000 mark, several key factors must align. This is what needs to happen.
Ethereum holders ready to break barriers
Ethereum price holds strong support at $3,352, according to data from In/Out Funding (IOMAP). At this point, 3.34 million Ethereum addresses hold 3.18 million coins and are in a profitable state.
IOMAP classifies addresses based on unrealized profit, loss, or break-even point. The larger the quantity or address within the accumulation range, the stronger support or resistance. Therefore, higher currency volume indicates stronger resistance, while higher currency volume indicates stronger support.
As shown below, the main resistance for Ethereum price breakout lies at $3,508. Here, 3.9 million Ethereum addresses purchased 1.62 million ETH. Therefore, if buying pressure increases, the cryptocurrency’s value could break this barrier and approach $4,000.
Another indicator that supports the bullish bias is the coin holding period. As the name suggests, token holding time measures how long a cryptocurrency has been held without being sold or traded.
The longer the holding period, the longer the holder can go without selling. Additionally, when holding times decrease, it indicates investors are selling.
According to data from IntoTheBlock, Ethereum holding time has increased by 332% in the past seven days. If this trend continues, then The Bullish Thesis for Ethereum The above mentioned may be verified.
ETH Price Prediction: Will Value Be Higher Soon?
From a technical point of view, ETH has moved above Ichimoku Balance Table Cloud. The Ichimoku Cloud is an indicator for finding support and resistance. When the cloud is above the price, it indicates resistance.
But when the price is above the cloud, it signals support, which could push the price higher. Therefore, for ETH, the cryptocurrency’s value could climb to $4,109. If the bulls hold the line above $4,000, the value could rise to $4,500.
However, that may not be the case if the bears take over. In this case, the price of Ethereum could drop to $3,111. should Selling pressure intensifiesthe price could drop below $3,000.
Disclaimer
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