Since the price of Ethereum (ETH) fell below $4,000 on December 17, it has struggled to recover from that level, causing widespread speculation that ETH may not return to this zone before the end of 2024..
However, a 5% price increase in the past 24 hours suggests sentiment may be changing. For Ethereum to challenge the $4,000 mark again, several key factors need to converge. This is what needs to happen.
Ethereum owners prepare to overcome obstacles
According to information from In/Out of Money Around Price (IOMAP), Ethereum price currently has strong support at 3,352 USD. At this point, 3.34 million Ethereum addresses hold 3.18 million coins and are in profit.
IOMAP classifies addresses based on unrealized profits, losses, or breakeven points. The greater the volume or number of addresses in the accumulation zone, the stronger the support or resistance. Therefore, high volume outside of profits signals stronger resistance, while high volume in profits indicates stronger support.
As seen below, the main resistance level for Ethereum price to overcome lies at $3,508. Here, 3.90 million Ethereum addresses bought 1.62 million ETH. Therefore, if buying pressure increases, the value of this cryptocurrency could overcome obstacles and trade closer to $4,000.
Another indicator that favors a bullish price trend is Coin Holding Time. As the name suggests, Holding Time measures how long a cryptocurrency has been held without being sold or traded.
When the holding period increases, this indicates that the owner is not selling. Conversely, when the holding period decreases, this shows that investors are selling.
According to IntoTheBlock data, Ethereum holding times have increased by 332% in the past seven days. If this trend continues, the Ethereum bullish thesis stated above could be confirmed.
ETH Price Prediction: Higher Values Coming?
From a technical perspective, ETH has surpassed the Ichimoku cloud. The Ichimoku Cloud is an indicator that identifies support and resistance. When the cloud is above the price, it indicates resistance.
But when the price is above the cloud, it indicates support, which can push the price higher. Therefore, for ETH, the value of the cryptocurrency could increase to 4,109 USD. If the bulls hold above $4,000, the value could rise as high as $4,500.
However, if the bears prevail, things may not work out that way. In that scenario, Ethereum price could drop to $3,111. If selling pressure intensifies, the price could drop below $3,000.
