As a seasoned crypto investor with over a decade of experience in this volatile market, I have learned to read between the lines and interpret the signs accurately. The current situation of Ethereum seems to be a classic case of a double-top pattern at the $4,000 resistance level, a clear bearish signal. However, the 4-hour chart presents a different narrative, suggesting a potential breakout above the $3,500 level.
The cost of Ethereum hasn’t managed to surpass the significant $4,000 mark and has displayed downward trends in its value since that point.
Investors are now worried that ETH might be reversing its overall price trajectory.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
Today’s graph illustrates that Ethereum’s price has created a distinct double-peak pattern at the $4,000 resistance barrier, having been turned away on two occasions. Additionally, the $3,500 support level has been breached downwards, and subsequent attempts to reclaim it have failed after multiple unsuccessful tries.
Right now, it appears likely that the price might dip towards the $3,000 support area and the 200-day moving average, which are roughly at the same level. The way the market responds to this crucial level could shape its course over the short term.
The 4-Hour Chart
On the 4-hour chart, it appears unlikely that there will be a dip down to the $3,000 mark. Instead, the market seems to be heading towards retesting the $3,500 level.
With the RSI also on the verge of rising above the %50 threshold, the market is demonstrating bullish momentum in this timeframe. This can indicate that a breakout above the $3,500 level is more probable this time. This scenario is of course, valid if the price is able to reach the level soon.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Ethereum Exchange Reserve
Observing the recent decline in Ethereum’s price following its rejection at the $4,000 price ceiling, a closer look at the network’s on-chain activity offers intriguing insights into investor behavior patterns.
This chart presents the Ethereum exchange reserve metric, which measures the amount of ETH that is held in trading platforms. This value is also used as a proxy for supply, as the coins held in exchanges can be sold almost any time.
Based on the graph, it shows that the exchange reserve figure has steadily increased during the past few months, suggesting that investors might be offloading their coins at a profit as the price hits $4,000. This trend could be one of the significant reasons behind Ethereum’s recent price stability in its bullish surge.
Meanwhile, during the recent price correction, the exchange reserve metric has been dropping and is currently declining below its 100-day moving average. This can indicate a potential accumulation by market participants, that could soon lead to a rally higher for ETH.
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2024-12-27 17:06