Ethereum price stalls at key price but on-chain metrics point to a surge

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As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. The current situation with Ethereum (ETH) is particularly intriguing, given its stalled price at the resistance level of $4,000 but the promising catalysts hinting at more gains.

The cost of Ethereum has halted near the barrier of $4,000, yet indicators based on transactions within the network and other outside influences suggest further increases.

Currently, Ethereum (ETH), the second most valuable cryptocurrency according to market capitalization, is being traded at approximately $4,008. However, its upward trend seems to have stalled lately due to encountering resistance for the past three successive weeks.

Even so, Ethereum (ETH) holds several factors that might drive its price upward in the short run. One significant factor is the ongoing rise of Bitcoin (BTC), which reached a new peak this week. Typically, altcoins such as Ether tend to mirror Bitcoin’s price trend.

Ethereum ETFs are experiencing significant investments too, a trend that might persist in the upcoming months. The total investment now surpasses $2.3 billion, with Grayscale and Blackrock accounting for the largest portions. It has seen daily investments for the past 17 consecutive days.

The number of active Ethereum wallets remains roughly around 600,000, as indicated by on-chain data. Meanwhile, the total number of Ethereum wallets has surpassed 123 million, based on information from IntoTheBlock.

The information presented indicates a trend where large Ethereum investors, or “whales,” are keeping their coins. Specifically, there are 90 accounts that own between 100,000 and 1 million ETH tokens, while 966 accounts hold between 10,000 and 100,000 coins.

Currently, data indicates that Ether is experiencing buying activity beneath the $4,000 mark. Approximately 7.2 million coins have been purchased slightly under this price point.

7.2 million units of Ethereum (ETH) were bought at rates slightly below $4,000, indicating robust demand. This demand could help maintain Ethereum’s price over the $4,000 mark, creating a sturdy foundation as support.

— IntoTheBlock (@intotheblock) December 17, 2024

According to Etherscan’s data, a significant Ethereum investor (referred to as a ‘whale’) transferred 16,000 ETH tokens, valued at approximately $64 million, from Binance to a secure wallet for safekeeping. Similar large-scale transactions have been observed in the past few weeks.

Currently, the Decentralized Exchange network associated with Ethereum is thriving, as the Total Value Locked within it increased by a significant 36%, reaching approximately $79 billion. Compared to other DeFi protocols on the top ten chains, Ethereum’s has more users than all of them combined.

Ethereum price could surge soon

Over the last several weeks, the graph for Ethereum’s weekly price reveals an impressive upward surge – a clear bullish pattern. However, at the $4,000 mark, it has encountered significant resistance and hasn’t managed to break through this level since March.

The main risk is that it has formed a triple-top pattern, a popular bearish sign in the market. This pattern has formed slightly above the 23.6% Fibonacci Retracement level.

Ethereum has consistently stayed over its 50-week and 100-week moving averages, and it’s currently positioned between the median line and the initial resistance level of the Andrew’s Pitchfork indicator.

Consequently, surpassing the triple-top peak could signal further increases, potentially reaching the historic high of $4,877. Going beyond this level might trigger additional gains towards $5,000.

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2024-12-17 18:38