Ethereum faces resistance at $3.7K: ETH can break through IF…

  • The key support level for Ethereum was at $3K zone and the key resistance wall was at $3.7K.
  • Binance whales continue to put selling pressure on ETH as the price found a local bottom.

As a seasoned crypto investor with battle-scarred fingers from riding the volatile crypto rollercoaster, I find myself cautiously optimistic about Ethereum’s current situation. The key support level at $3K and resistance wall at $3.7K have been a seesaw of emotions, but the local bottom we seem to be experiencing amidst whale sell pressure could be a promising sign.

Investigation into the “Within/Beyond the Purchase Price” for Ethereum’s [ETH] revealed the strongest level of backing in the range between $3,030 and $3,130, an area where a large number of buyers had originally acquired their ETH.

In contrast, the main obstacle was found around $3,640 and $3,740. If the price surpassed these levels, a continued upward trend appeared likely.

As I pen this analysis, approximately 51.58% of Ethereum’s trading volume can be classified as “In-the-Money,” signifying profits for its holders. Conversely, about 48.04% of the volume is currently “Out-of-the-Money,” suggesting potential selling pressure or losses could occur at higher price levels.

In a tight range centered around the current price of $3,337.41, accounting for just 0.38% of trading activity, indicates a precarious equilibrium. Small price fluctuations could potentially shift this balance.

If the price falls under $3,000, it might lead to a more significant downtrend due to investors looking to sell who are currently at a loss. On the other hand, if the price consistently surpasses $3,700, it could signal the continuation of a bullish trend, motivating those with profits to maintain their holdings in anticipation of additional growth.

Local bottom amid whale sell pressure?

It was clear throughout December that the downward price trends on Binance’s Ethereum market were strongly associated with increased selling by large investors, or “whales.

During times when delta values drastically decreased, it was noticeable that the value of Ethereum also dropped substantially. This suggests that major transactions have a powerful impact on public opinion and the overall stability of Ethereum.

From my perspective as a crypto investor, an uptick in whale activity might hint at upcoming price surges – moments that savvy traders should keep a close eye on, as these could signal a shift in the market trend.

As an analyst, I’ve observed that Ethereum’s price trend mirrored a classic double-top formation, a pattern often signaling a potential reversal. Two peaks were established near the $4K mark, followed by a significant drop down to approximately $3.4K – a level that served as our anticipated bearish neckline, aligning with my forecast of a downward trend.

After falling, the price dipped down to $3,200, which was the predicted minimum according to the pattern. This dip sparked conversations about whether Ethereum might have hit its local bottom, implying a possible recovery.

Based on past trends, it’s possible that these feelings typically occur before a period of stability or reversal. If this pattern continues, ETH may recover from its current levels, implying a potential short-term low point has been reached.

Spot ETH ETFs inflow

Approximately $130.76 million flowed into the Spot Ethereum ETF, indicating a significant increase in investor attention that followed a stretch of inconsistent yet relatively low investment volumes.

The consistent investments into ETH financial products indicate a rise in investor trust, which might lead to price stability or even an increase in the value of this asset in the near future.

Read Ethereum’s [ETH] Price Prediction 2024-25

As a researcher, I’ve observed an interesting pattern: when Exchange Traded Fund (ETF) inflows have increased historically, it tends to coincide with Ethereum’s (ETH) price rise. This suggests that if this trend persists, we might witness a similar positive correlation between ETF inflows and the value of ETH.

As a researcher, I’m observing an increase in investment activity, which might be indicative of a positive outlook among investors. If this heightened investor interest persists, it could potentially suggest that we’ve reached a local market bottom.

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2024-12-25 09:14