As a seasoned crypto investor with a knack for navigating the volatile cryptocurrency market, I find myself intrigued by the current state of Ethereum (ETH). The struggle of ETH to hold above $4,000 is not unfamiliar territory, as I’ve seen many digital assets face similar challenges.
In simple terms, due to certain challenges, the value of Ethereum might stay within a specific range around two significant price points in the coming days, as suggested by a cryptocurrency expert, since it’s struggling to maintain its price above $4,000.
In simpler terms, “Rekt Capital, an anonymous cryptocurrency trader, noted in a recent report that Ethereum has had trouble maintaining its value above $4000. Although Ether reached as high as $4077 over the past month, it hasn’t been able to sustain this level according to CoinMarketCap data.
ETH may consolidate between 2 psychological levels
Rekt said that $3,000 has now become “psychological support,” for Ether (ETH), a level that Ether last touched on Nov 9. Before that, Ether had been trading below $3,000 since Aug. 3.
Rekt implies that Ether might stay within a range of around $3,000 to $4,000 in the upcoming period. But he also speculates that its current value of $3,466 could potentially drop by over 10% in the short term, bringing it near the $3,000 mark.
Rekt mentioned that it’s interesting to see if Ethereum might establish a base near that region, which could lead to the development of a potential right shoulder. This, in turn, could indicate the formation of an overall inverse head-and-shoulders pattern.
The head-and-shoulders pattern is a reversal pattern that can signal a change in trend direction. Analysts have been pointing to various factors such as lack of Ethereum supply on crypto exchanges and increasing inflows into spot Ether exchange-traded funds (ETF) as potential catalysts for strong price momentum.
According to a report by CryptoMoon on December 17th, data from the onchain market intelligence firm CryptoQuant indicates that Ethereum balances held on exchanges have dropped to a minimum of 9.2 million ETH, which represents a decrease of almost 10% compared to the past year.
Currently, certain analysts are hopeful that the flow of investments into Ether Exchange-Traded Funds (ETFs) is picking up speed and may surpass Bitcoin ETFs in terms of performance by the year 2025.
Analysts expect Ether ETF uptrend to continue
Since their U.S. debut on July 23rd, Exchange Traded Funds (ETFs) focused on Ethereum, or Spot Ether ETFs, have amassed a total of around $2.43 billion, as per the latest statistics from Farside.
Experts predict that the current upward trend will persist up until 2025, with a stronger possibility if authorities permit these funds to produce returns through staking.
Asset manager VanEck estimates Ether’s spot price will reach $6,000 by the fourth quarter of 2025.
When Ether ETFs started trading in July, there was a sense of hope among cryptocurrency enthusiasts that Ether could mirror Bitcoin’s performance following the debut of spot Bitcoin ETFs in January.
Consequently, the relatively low initial flows made it less probable that Ether would exceed its record high and reach $5,000 by the end of the year.
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2024-12-21 09:03