Ethereum (ETH) price is up 48.19% so far in 2024, though it is lagging behind Bitcoin’s 123% gain this year. Despite ETH’s strong performance, the recent uptrend appears to be losing steam, with the ADX indicating a weakening trend strength.
Whales are piling on more ETH, hitting the highest number of major holders since September. Key resistance at $3,523 will be crucial in determining whether ETH can extend its rally towards $4,100 or face a pullback to test lower support levels.
ETH's Uptrend Is Still Strong, But It May Lose Momentum
Ethereum’s Directional Movement Index (DMI) shows that the Average Directional Index (ADX) is currently at 27, down sharply from 46 just two days ago. This decline suggests that the strength of ETH’s recent uptrend is weakening, even as the price stabilizes after a 9% rise over the past three days.
While the ADX indicates declining momentum, the D+ (positive directional indicator) at 21.1 remains above the D- (negative directional indicator) at 16, confirming that buying pressure still outweighs selling activity, although it is less intense than before.
ADX is a widely used indicator that measures the strength of a trend on a scale of 0 to 100 without specifying its direction. Values above 25 indicate a strong trend, while values below 20 indicate a weak or non-existent trend.
With Ethereum’s ADX now at 27, the uptrend remains moderately strong, but the declining value highlights a pause in momentum as the market stabilizes. This suggests that ETH price is stabilizing, which could pave the way for either a continuation of the uptrend or a change in sentiment if sellers gain momentum.
Ethereum Whales Hit Highest Level Since September
The number of whales holding at least 1,000 ETH has reached its highest level since September, currently standing at 5,631. This represents a recovery from 5,565 recorded on November 26, indicating increased interest and accumulation by large holders.
This increase in whale activity indicates growing confidence among large investors, and is often considered a bullish signal for Ethereum’s price path.
Tracking whale activity is crucial because these large holders can have a significant impact on market trends due to their large positions. Increased whale addresses often indicate accumulation, which can support price stability or stimulate upward momentum.
With the highest number of Ethereum whales since September now, this accumulation could indicate that large investors are positioning themselves for potential price gains, hinting at a bullish sentiment in the short term. This increased interest from whales could provide a basis for Ethereum price to maintain its strength or even rise further if the trend continues.
ETH Price Prediction: Nearest Resistance Is Key
Ethereum resistance at $3,523 is considered a critical level for its short-term price action. If this resistance is broken, ETH could test the $3,763 level next.
If the uptrend continues, Ethereum price could continue to rise to $3,987 and possibly test levels around $4,100 again, indicating a strong continuation of the bullish momentum.
On the other hand, if ETH fails to break the $3,523 level, the price may face a pullback, testing the support at $3,256.
If this support does not hold, the price of ETH may drop further to $3,096, indicating increased selling pressure.