$ETH
ETH Market Analysis: A Tug of War Between $3000 and $4000, When Will It Break Through?
Brothers, the recent ETH market has been quite 'sideways', with prices repeatedly tugging between $3000 and $4000. Although short-term fluctuations are the main theme, there are still many opportunities hidden within the market volatility!
Recent Market Performance
Range Fluctuation:
The ETH price is currently oscillating between the psychological support at $3000 and the psychological resistance at $4000. Over the past month, Ethereum has attempted multiple times to stabilize at $4000, but all have 'failed spectacularly', especially after spiking to $4077 on December 6 and quickly retracting, indicating strong resistance at this level.
Currently, the ETH price hovers around $3400, and it is predicted that it may continue to decline in the short term, approaching the $2800 support. If this area forms a bottom, it may trigger a rebound, potentially forming a bullish head and shoulders pattern.
Exchange ETH Balance Hits New Low: The current balance is only 9.2 million coins, the lowest level in 8.5 years. This supply shortage may provide support for the price.
Strong Inflow of Spot ETH ETF: Since its launch in July, the spot Ethereum ETF has attracted $2.43 billion in funds, and this trend is expected to continue until 2025.
Bullish Target: By Q4 2025, the spot price of ETH could reach $6000, especially if regulators allow ETF funds to generate returns through staking, which will attract more capital into the market.
Bitcoin Effect: The market anticipates that the ETH ETF can replicate the success of the Bitcoin ETF. However, the current inflow of capital into Ethereum is relatively weak, indicating that the likelihood of breaking through $5000 by the end of the year is reduced.
If the price falls to the $2800 support level and shows signs of rebounding, one can consider positioning long orders, targeting the $3400-$3600 area. If the price breaks through the $4000 level, it means that the bulls regain control of the situation, and one can follow up with long orders, targeting $4200.
Considering the market's favorable factors (such as tight exchange supply and ETF fund inflows), if the ETH price can form a stable bottom around $2800, one might consider gradually positioning long-term long orders, targeting $5000 and above.
The current ETH market is somewhat like 'sharpening the axe will not hinder the work of cutting firewood'; although the short-term fluctuations are frustrating, this may be building strength for the next round of rises, and opportunities are waiting within the fluctuations!