- ETH has stabilized at $3.5K despite an aggressive $400M sell-off.
- Here’s why $3.7K and $3.8K could be reachable in the short term.
As a seasoned crypto investor with years of experience navigating the volatile cryptocurrency market, I find the recent performance of Ethereum (ETH) particularly intriguing. Despite a significant $400M sell-off, ETH has managed to stabilize at $3.5K – a level that’s becoming increasingly significant in this cycle.
The recent drop in ETH’s (Ethereum) value has reached levels similar to its highest point in 2021; however, it managed to maintain itself above the $3,500 mark, demonstrating a stable position.
As a researcher, I’ve observed an intriguing trend based on data from CryptoQuant. The average monthly sell-off for ETH has reached approximately $400 million in net taker volume, a level that mirrors the intense selling pressure experienced during the previous peak at around $4.8K.
Ethereum rally: $3.5K support
Nevertheless, experts predict that the altcoin might still have room to grow in this cycle. Starting from late November, ETH has maintained its value above the $3.5K support line. The recent steep price drop came to a halt exactly at this crucial level.
This has reinforced the $3.5K level as a key short-term support for ETH’s potential upside move.
As a researcher, I share a comparable viewpoint to that of market analyst Eugene Ah Sio, yet I sound a cautionary note: A fall below $3.5K could potentially impact investor confidence in Ethereum (ETH) and the broader altcoin market.
Marking key support levels for top majors (BTC, ETH, SOL), he said,
“The market appears to have set three important support points at 94k, 3.5k, and 200. If we lose these, holding onto altcoins in your portfolio might not be the best move anymore. However, if these levels hold strong, it’s still a playable situation.
Despite some sell-offs by certain holders, the desire for U.S. spot ETH ETFs continued to be robust, as indicated by a massive $305.74 million in daily investments on December 10th.
This marked twelve consecutive days of inflows, reinforcing a strong bounce above $3.5K.
In other words, based on the analysis provided by the Hyblock liquidation heatmap data, what potential short-term prices might Ethereum reach as it bounces off this support level?
As a researcher analyzing the current market data, I’ve noticed that the latest liquidation levels indicate a significant clustering of leveraged positions around the price points of $3.69K and $3.72K. Further potential targets for upward movement include $3.8K, $3.9K, and $4K.
As a crypto investor, I’ve found myself in situations where I’ve taken leveraged short positions, hoping to push down the price. These strategies can sometimes trigger what’s known as a ‘liquidation hunt’, where the market is forced to buy or sell large amounts of ETH to cover these short positions. Recently, these leveraged positions were tapped at around $3.5K, which could potentially increase the chances of Ether reaching those upside liquidity levels and possibly even surpassing them.
Read Ethereum [ETH] Price Prediction 2024-2025
On the downside, there are additional potential support levels at approximately $3,400 and $3,380. If Ethereum’s price drops further, these points might serve as significant anchors.
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2024-12-11 14:15