As a seasoned researcher with over a decade of experience in the cryptocurrency market, I find myself often in awe of Ethereum‘s resilience and volatility. The latest price action has once again demonstrated the unpredictability that is inherent in this space.
Recently, Ethereum encountered a slight pushback at the significant $4,000 barrier, highlighting the presence of sellers at that price point.
As an analyst, I foresee a potential retreat towards the $3.5K region, which could potentially offer a buying opportunity for investors. The aim here would be to surpass the $4K mark once more.
Technical Analysis
By Shayan
The Daily Chart
Recently, Ethereum encountered yet another refusal at the crucial $4,000 barrier, underscoring the dominance of sellers within this area. As a result, it’s becoming difficult for buyers to maintain the upward momentum towards a fresh record high.
Based on recent price movements, it appears that a double-top bearish reversal pattern might be forming. This pattern could indicate a possible price drop toward the $3.5K support level. At present, Ethereum is moving within a range of $3.5K to $4K, and a breakout beyond this range may occur after a period of consolidation. If we see a bullish breakout above $4K, it could lead to continued price increases.
The 4-Hour Chart
On the 4-hour chart, Ethereum regained its vigor as buyers intervened close to the base of the ascending channel. This purchase activity ignited a new surge, pushing the value towards the midpoint of the channel, coinciding with the crucial $4K resistance point.
However, the asset encountered a rejection at this zone, leading to a decline. Ethereum is now oscillating between the lower boundary of $3.7K and the $4K resistance. In the mid-term, further bearish retracement toward the lower boundary, followed by a renewed attempt to reclaim the $4K resistance, appears likely. A successful breakout above $4K could signal the continuation of Ethereum’s bullish trend.
Onchain Analysis
By Shayan
This diagram shows the Binance Liquidation Heatmap for Ethereum, pinpointing probable price points where large-scale liquidation incidents might take place. The concentration of these liquidation points within a particular price range indicates that the price may trend towards this area. These points act as useful markers for forecasting price trends and locating potential meeting points.
As shown, there is a notable concentration of liquidity just above the critical $4K resistance, representing the liquidation levels for short positions. This makes the $4K region an attractive target for whales and large institutional players, increasing the likelihood of a bullish breakout in the mid-term.
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2024-12-18 16:35