Ethereum has weathered a 4% decline over the past week, prompting on-chain analysts to identify the $2,000 mark as a pivotal support level. According to IntoTheBlock, approximately 36 million ETH changed hands around this price, signaling a substantial demand zone for the second-largest cryptocurrency.
Renowned analyst Michaël van de Poppe weighed in on the situation, taking to Twitter to share insights. Van de Poppe expressed optimism about altcoins displaying strength but cautioned that the momentum for Ethereum had yet to materialize. In his tweet, he hinted at a potential shift of money from Bitcoin to Ethereum, a move that could catalyze a bullish trend for altcoins in the first quarter, coinciding with a peak in Bitcoin dominance.
Despite these optimistic projections, recent price analysis paints a more nuanced picture. ETH’s value has experienced a downward correction phase since the second week of December, shedding 10% from its recent high of $2,400. This decline raised concerns as it approached the support trendlines of a rising channel pattern, suggesting the possibility of further corrections for ETH.
However, the cryptocurrency demonstrated resilience, managing to recoup its losses and currently trading at $2,234.46, marking a nearly 5% increase in the daily chart. The market’s response suggests that ETH may have successfully averted a more severe correction, but the landscape remains dynamic and unpredictable.
Ethereum Price Forecast: Market Sentiment
Looking ahead, Changelly’s most recent Ethereum price forecast paints a cautiously optimistic picture. The prediction indicates a potential 2.71% increase, bringing Ethereum’s value to $2,228.00 by December 20, 2023. Technical indicators further contribute to the mixed sentiment, with a Neutral Bullish market sentiment of 52%. The Fear & Greed Index, standing at a score of 65 (Greed), hints at a relatively confident market atmosphere.
Over the past 30 days, Ethereum exhibited 19/30 (63%) green days, indicating periods of positive momentum, but not without a notable 5.66% price volatility. As Ethereum navigates these fluctuations, market participants eagerly await further developments that could shape the cryptocurrency landscape in the coming weeks.
Related Reading | Tether Tackles Terror: $435M Frozen in Crypto Crackdown