Ethereum (ETH) has been on a rollercoaster ride, experiencing a notable retracement of its gains earlier this month. Despite a generally bullish trend and market structure, some metrics suggest that selling pressure is on the rise. However, the deflationary nature of Ethereum is instilling confidence in long-term holders.
The journey began in early November when ETH soared to $2,130, only to initiate a gradual pullback over the following three weeks. The retracement tested the resilience of Ethereum bulls, but they regained control, consolidating around the $2,030 region before making a swift upward push. This critical zone, highlighted in cyan, coupled with its proximity to the psychologically significant $2,000 mark, is now considered a robust support zone.
As of press time, Ethereum is trading at $2,279.80, boasting a 24-hour trading volume of $12 billion, reflecting a 4% increase. Over the last 24 hours, ETH has witnessed a marginal 0.20% dip and is down almost 4% in the weekly chart.
According to PricePredictions, a bullish trend is anticipated in the long term. Their prediction suggests a price increase of $11.69 over the next seven days, reaching $2,293.24 by December 21, 2023. However, in the short term, machine learning algorithms indicate a bearish trend, signaling a slight decrease in the coming hours for investors to watch out for.
Analyst Insights: Ethereum Support and Resistance, Correction Scenarios
Renowned analyst Michaël van de Poppe emphasizes Ethereum’s positive support and resistance flip at the $2,125 mark. Even in the event of a correction to $1,900, he believes the overall trend remains upward, with the next resistance zone identified at $3,400-3,800 in the first quarter of 2024.
Another analyst, Ali, notes Ethereum’s descent into a crucial demand zone ranging from $1,934 to $2,160. In this zone, a staggering 5.58 million addresses are holding nearly 40 million ETH, making it the most critical support level from an on-chain perspective.
For traders, this presents a potentially lucrative reloading point, highlighting the importance of vigilance in the ever-evolving landscape of cryptocurrency markets. Nevertheless, as Ethereum navigates these crucial levels, investors are advised to stay tuned for further developments in this gripping crypto saga.
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