Will ETH Price Break Consolidation?
The second largest cryptocurrency Ethereum has fallen by more than 20% compared with Bitcoin in the past six weeks. As the ETHBTC ratio is still close to two months, the seller is trying to stabilize the price below $ 3,400. This pressure led to a sharp decline in an important chain indicator, indicating that the price may fall further.
The decline in Ethereum may be short -term
Since buyers and sellers are facing liquidation, Ethereum’s price has experienced different reactions in the market. According to the data of Coinglass, in the past 24 hours, the total liquidation of Ethereum was $ 35 million, of which $ 14 million came from buyers and $ 21 million from the seller.
Intotheblock data shows that Ethereum’s volatility has been declining in the past 30 days. The sharp decline in volatility may be a negative signal for Ethereum, because it indicates that transaction activities are reduced, which may reduce the opportunity to break the key resistance level. At present, the volatility is 42.6%.
According to data from TradingView, as of press time, the ETH/BTC ratio (indicating that Ethereum is the value relative to Bitcoin) of 0.03194. Since Bitcoin reached $ 100,000 on December 5, this ratio has decreased by 19%.
However, in the previous bull market cycle, the ETH/BTC ratio touched a low point of about 0.03 in March 2021, and then climbed to 0.077 within two months. During this period, the price of Ethereum rose 110%to $ 3,817.
Please read another: Ethereum price forecast 2025, 20126 – 2030: Can the price of ETH reach $ 5,000?
As the adoption rate of Bitcoin continues to grow, emptiness of Ethereum will be a mistake. Some people think that although many people are concerned about what the United States elected President Donald Trump may use Bitcoin during his term, Ethereum can also benefit from the most widely used in Bitcoin.
Apollo co -founder Thomas Fahrer said that if Bitcoin strategic reserves are implemented, the price of Bitcoin may rise to $ 1 million in this cycle. He also pointed out that this is positive for Ethereum, indicating that the price goal of $ 4,000 can be achieved.
What is the next trend of ETH price?
The price of Ethereum has been rising sharply, breaking through the previous resistance, and is now trying to break through the direct Fibonacher channel. However, it faces some selling pressure near the decline resistance line, which constitutes a major challenge for buyers. At present, Ethereum transaction price is $ 3,343, up 1.01%in the past 24 hours.
ETH/USDT transactions are hovering at a slightly less than $ 3,430, which may constitute a major obstacle. If it can be maintained on this level, it may be beneficial to buyers, pushing the price to $ 3,730, or even reaching $ 4,000.
On the contrary, if the price falls below the EMA20 trend line on the one -hour chart, the seller may lower it to about $ 3,200. Nevertheless, the relatively weak index (RSI) of 52 indicates that it may rise soon because it indicates that continuous purchase interest.
