Will Ethereum Price Hit a New ATH Before 2024 Closes?
The price of Ethereum (ETH) has once again crossed $3,900. This rally hints at further gains in altcoin prices towards the end of the year.
But does this mean cryptocurrencies can surpass previous all-time highs anytime soon? this On-chain analysis Reveal whether this is possible.
Ethereum loses bullish dominance in two major zones
Ethereum is currently trading at around $3,939, which means the altcoin’s price is up 67.30% in 2024. Key role in ETH’s rise is its open interest (OI) during the year.
OI refers to the sum of the value of all open contracts in the market. When it increases, it means more liquidity flows into cryptocurrency-related contracts. In derivatives markets, this indicates Buying pressure riseswhich could lead to price increases.
On the other hand, falling open interest indicates selling pressure. The decline indicates traders are increasingly liquidating positions and withdrawing liquidity from the market.
According to Santiment, Ethereum’s OI climbed to $14.5 billion yesterday (December 15). However, as of this writing, that number has dropped to $13.94 billion, indicating a reduction in ETH exposure. Considering the above, this drop suggests that Ethereum price may fall again if OI maintains this stance.
Another indicator that supports this bias is Ethereum exchange inflows. Exchange inflow refers to the average number of tokens per transaction sent to an exchange. High values indicate that investors are moving more money, indicating increased selling pressure, which could lead to lower prices.
However, lower FX inflows on this indicator suggest a decrease in selling pressure. According to CryptoQuant, exchange inflows have climbed compared to December 14, indicating increased selling pressure surrounding ETH.
If sustained, this could hinder the cryptocurrency’s rise to $4,500 or record high Before the end of 2024.
ETH Price Prediction: Not Yet Reaching $4,500
Looking at the daily chart, the Parabolic Stop Reversal (SAR) indicator has risen Higher than the price of ETH. SAR is a technical indicator that shows whether a cryptocurrency is encountering resistance or solid support.
When the dotted line is below the price, it indicates there is significant support that could push the price higher. However, currently, the dotted line is above Ethereum’s price. As a result, cryptocurrencies face resistance.
As long as ETH trades below this indicator, the price is likely to fall, with a possible target around $3,315. If this is the case, then Ethereum’s Prices may not hit all-time highs Before the end of the year.
However, if open interest increases and FX inflows fall to extremely low levels, then forecast may be declared invalid.
Disclaimer
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