Ethereum Price Retests $4k, These ETH-based Altcoins To Rally Next?
Ethereum has once again faced a major rejection at the $4000 mark, marking the third time this has occurred in 2024. This has raised concerns among investors about the next potential price action for the second-largest cryptocurrency by market cap. As the year draws to a close, Ethereum’s price continues to fluctuate within a narrow range, with some indicators pointing towards a bearish outcome while others suggest a bullish rally is on the horizon. This pullback could present a great buying opportunity for those looking to capitalize on a potential ETH price surge.
While Bitcoin struggles to reclaim its all-time highs above $100K, Ethereum has shown remarkable stability and potential for reaching new price highs in the near future. Data from CryptoQuant indicates that accumulation addresses have seen a significant increase in balance as Ethereum maintained stability above $2000 and traded within a range-bound pattern.
Whales in the market have been quietly accumulating Ethereum, hinting at a possible explosive breakout in the near future. Moreover, the number of active Ethereum addresses has been steadily increasing since the beginning of November, surpassing 400K from a low of around 250K. Additionally, the balance of Ethereum on exchanges saw a significant decrease in December, dropping by over 700 million. This suggests that traders are bullish on Ethereum, setting the stage for a potentially explosive start to 2025.
On the weekly chart, Ethereum’s price has been holding support at $3346 after a prolonged pullback. A break above this level could signal a shift towards a bullish trend, while a drop below the range may lead to lower targets at $3000 or even $2750. Maintaining levels above $3400 is crucial for sustaining a bullish scenario and potentially pushing the price towards $3500 or even $4000.
In conclusion, Ethereum’s price action in the coming weeks will be crucial in determining its trajectory for the rest of the year. With bullish indicators pointing towards a potential rally, investors should keep a close eye on key support and resistance levels to capitalize on potential opportunities in the market.