Ethereum (ETH) is currently experiencing mixed signals in its price action, trading between a key resistance level at $4,100 and support at $3,600. However, recent metrics such as NUPL (Net Unrealized Profit/Loss) show improving investor sentiment, although still far from the “Euphoria – Greed” stage typically seen at market tops. This indicates both the potential for a new all-time high before Christmas and the risks of a possible correction in the short term.
NUPL, which reflects the overall unrealized profit or loss of holders, has moved Ethereum from the “Optimism – Anxiety” stage to the “Belief – Denial” stage, currently standing at 0.52. While this suggests increasing confidence and profitability among investors, the lack of extreme optimism indicates room for further growth in ETH’s price as sentiment strengthens.
The number of Ethereum whales holding at least 1,000 ETH has been steadily increasing since mid-November, reaching 5,600 currently from 5,534 on November 14. However, after a significant surge in whale numbers between November 6 and November 10, accumulation has slowed down. This stabilization could indicate a period of consolidation for ETH price, potentially preceding a directional move depending on market sentiment.
Ethereum price is currently facing resistance around $4,100 and finding support at $3,600, with a recent crossover between short-term trend lines hinting at a potential new uptrend. If this bullish signal materializes, ETH price could test the $4,100 resistance again, remaining approximately 20% below its all-time high from 2021, indicating room for further growth.
On the downside, a reversal into a downtrend could lead to a retest of $3,500, with further declines possible if $3,255 support is breached. This scenario could delay any attempts to reclaim higher price levels, highlighting the importance of monitoring market dynamics and whale activity for potential price movements.
In conclusion, Ethereum’s current price action and market sentiment suggest a potential for both further growth towards a new all-time high before Christmas and the risks of a correction in the short term. By analyzing indicators such as NUPL and whale activity, investors can gain valuable insights into market sentiment and potential price movements, helping them make informed decisions regarding their ETH holdings. As ETH continues to trade within a range, it remains crucial to monitor key support and resistance levels for possible breakout or breakdown scenarios in the coming days.
