Ethereum May Retest $3,700 Before a Major Rally, Analyst Predicts

by

As a seasoned analyst with over two decades of experience in financial markets, I’ve seen my fair share of market cycles and trends. While Bitcoin‘s meteoric rise has been captivating, Ethereum‘s recent performance seems to be a tale of resilience and potential growth.

As a crypto investor, I’ve noticed that while Bitcoin seems to be consistently on the rise, Ethereum’s relatively slower price growth has caught my attention and perhaps that of other analysts in this space.

Today, Bitcoin surpassed a new high of $106,000, but Ethereum’s price remains below $4,000 at $3,943, reflecting a moderate growth of 1.4% in the last day.

Nevertheless, even though its progress appears sluggish currently, certain experts detect indicators of robustness and imminent expansion for Ethereum.

Retest Before The Major Rally

One notable analyst, CryptoBullet, shared his insights on X, drawing comparisons between the current market environment and Ethereum’s January 2021 rally.

For a second week in a row, the weekly candle finished above the previous resistance level, as noted by the analyst. The structure of the candle and current market conditions have a resemblance to January 2021, suggesting potential growth. We could potentially see Ethereum reaching $3,700 this week, but it may quickly recover. Remember to take notice of the increasing strength in Ethereum.

In simpler terms, CryptoBulllet pointed out that Ethereum consistently staying above important resistance points indicates a buildup of positive market pressure, potentially signaling a major price surge may soon occur.

$ETH 1W update

Second consecutive weekly candle closed above the Resistance

The shape of the candle and overall environment reminds me of January 2021

We might wick to $3700 this week but it will be bought back up quickly

Don’t ignore this #ETH strength!

— CryptoBullet (@CryptoBullet1) December 16, 2024

A well-known crypto expert, much like many others in the community, expressed similar enthusiasm, highlighting Ethereum’s latest weekly candle close as a significant achievement that ranks among its highest since 2021.

Reached a new record high this week! Ethereum has closed at its highest point since last year, marking a significant achievement according to this observer,” he noted. “If this level is successfully defended, it may push the price to surpass its old peak and reach even greater heights.

These findings suggest that investors are becoming increasingly optimistic about the potential for Ethereum to surpass its previous peak price of $4,878, a level it reached back in November 2021.

Ethereum Traders Faces Liquidation

As a crypto investor, I’ve been keeping an eye on the bullish forecasts for Ethereum, but unfortunately, the recent price fluctuations haven’t been kind to many traders out there. Looking at the data from Coinglass, it seems that a staggering 123,021 traders faced liquidation over the past day, with a total of $396.41 million in liquidations across the crypto market. It’s a reminder for us all to manage our investments wisely and be prepared for the ups and downs that come with investing in this dynamic market.

Approximately 53.12 million dollars in liquidations on Ethereum were recorded, with long positions accounting for around 28.4 million dollars and short positions experiencing about 24.69 million dollars in liquidations.

Significantly, liquidation happens when a trader’s open position is compulsorily closed by an exchange because there are not enough funds to cover the losses. In the context of Ethereum, the increased number of liquidations, especially amongst long positions, suggests that traders have taken on excessive leverage when wagering on Ethereum’s price increase.

Read More

2024-12-16 22:16