Ethereum (ETH) has been struggling to reclaim the $4,000 mark since its price fell below it on December 17. Speculation suggests that ETH may not reach this level again before the end of 2024. However, a recent 5% price increase in the last 24 hours indicates a shift in sentiment, potentially paving the way for a retest of the $4,000 mark. To achieve this, several key factors must align.
One important factor is the In/Out of Money Around Price (IOMAP) data, which shows that Ethereum price has strong support at $3,352. This level is held by 3.34 million Ethereum addresses, who are currently in profit. The IOMAP categorizes addresses based on unrealized profits, losses, or breakeven points, with a higher volume of addresses at an accumulation range indicating stronger support or resistance. The major resistance for Ethereum lies at $3,508, where 3.90 million Ethereum addresses hold 1.62 million ETH. Increased buying pressure could help the cryptocurrency surpass this hurdle and approach $4,000.
Another bullish indicator is the Coins Holding Time, which measures the period Ethereum has been held without being sold or transacted. According to IntoTheBlock’s data, Ethereum’s holding time has increased by 332% in the last seven days. If this trend continues, it could validate Ethereum’s bullish thesis and potentially lead to higher values soon.
From a technical perspective, ETH has risen above the Ichimoku cloud, indicating potential support and resistance levels. With the cloud above the price, it suggests resistance, but when the price is above the cloud, it indicates support that could drive the price higher. Based on this analysis, ETH’s value could climb to $4,109, and if bulls maintain their position above $4,000, the price may rise to $4,500. However, if bears take control, Ethereum’s price could decline to $3,111 and possibly even below $3,000 if selling pressure intensifies.
In conclusion, Ethereum’s recent price increase and bullish indicators suggest a potential retest of the $4,000 mark. Strong support at $3,352 and resistance at $3,508, along with increased holding time and technical analysis, indicate the possibility of higher values for Ethereum in the near future. However, market dynamics are volatile, and it remains to be seen whether Ethereum can sustain this positive momentum and reach new price levels.
