Ethereum (ETH) price has been fluctuating below expectations in December, disappointing investors who were hoping for it to stay above $4,000. However, despite this setback, ETH has managed to gain nearly 6% over the last week, showing signs of resilience. The Relative Strength Index (RSI) has been neutral for a week, indicating a lack of strong momentum in either direction, while whale activity has stabilized near its highest levels since September. With the price consolidating between $3,523 and $3,220, the next move for ETH depends on breaking key resistance levels or holding critical support levels.
The RSI for Ethereum is currently at 50.21, remaining in the neutral zone between 35 and 55 since December 20. This suggests that the price movement for ETH has been lacking significant momentum, indicating a period of consolidation. The RSI is a momentum indicator ranging from 0 to 100, with values above 70 signaling overbought conditions and values below 30 indicating oversold conditions. Ethereum’s RSI at 50.21 implies a balanced market with buyers and sellers having equal control over the price direction.
On December 25, the number of addresses holding at least 1,000 ETH reached 5,634, the highest level since September, before slightly dropping to 5,631 on December 26. Monitoring the behavior of ETH whales is crucial as their actions can influence the market due to the large amounts of liquidity they control. The current stabilization of whale activity at higher levels suggests that large holders are still confident in ETH, potentially supporting its price in the short term. However, the slight decline also signals caution, indicating that ETH price could remain range-bound unless there is a significant change in whale behavior.
Ethereum price is currently trading within a range with resistance at $3,523 and support at $3,220. The EMA lines show a downtrend, with short-term averages positioned below long-term averages. Despite this trend, the weakening strength of the downtrend suggests that ETH might be entering a consolidation phase rather than continuing its decline. If the price breaks above the resistance at $3,523, it could target higher levels at $3,827 and potentially $3,987. Conversely, if the support at $3,220 is tested and fails, the price may drop further to $3,096, which is a critical level for potential stabilization.
In conclusion, Ethereum’s price movement in December has been below expectations, but the cryptocurrency has shown resilience with a slight gain over the last week. The RSI remains neutral, indicating a period of consolidation, while whale activity has stabilized at high levels since September. The next move for ETH depends on breaking key resistance levels or holding critical support levels. Despite the challenges, Ethereum continues to show signs of strength and potential for a breakout in the near future. Investors should monitor whale activity and key price levels to make informed decisions about their ETH holdings.
