“ETH Struggles with $4,000 Resistance Level: A Precursor to a Breakout or a Signal for Continued Consolidation?”
Due to the cryptocurrency market's sharp decline yesterday, Ethereum (ETH) has faced rejection at the key resistance level of $4,000 three times since March 2024. Currently, ETH's price is $3,400, down 6.7% in the past 24 hours. Although ETH has gained 47% this year, it has still not outperformed other major cryptocurrencies such as Bitcoin (BTC), Solana (SOL), and XRP.
Firstly, ETH's brand recognition is significantly lower than that of Bitcoin. Despite the launch of the spot ETH ETF in August this year, which should have been a positive signal, it failed to significantly boost ETH's price. In contrast, the net assets of the spot BTC ETF are far higher than those of ETH, indicating a difference in investor interest between the two. Additionally, the outflow of funds from the ETH ETF reached $60 million yesterday, the largest single-day outflow since November 19, and social sentiment has dropped to a one-year low.
The futures market has also begun to turn bearish on ETH, with futures premiums turning negative for the first time, and large-scale liquidations of ETH have occurred since December 9. The Ethereum Foundation's sale of ETH at price peaks has also raised market concerns, and the issuance rate of ETH supply remains a point of concern.
Some analysts are optimistic about ETH's future, believing that the current price adjustment may pave the way for a rebound. Trader_XO bought ETH at the $3,200 level, expecting the price to undergo a consolidation period of “a few weeks” before the rebound. A potential ascending triangle has been identified on ETH's monthly chart, with expectations that the price may further drop to $2,800 before reaching new highs. Other analysts have observed oversold signals on ETH's 4-hour chart, suggesting that a rebound may not be far off.
What does the future hold for Ethereum? Perhaps this low point is the moment to gather strength, and opportunities may be right in front of us. If you also want to grasp more market trends, remember to follow Jiao Shou, and let’s explore investment opportunities together!
