Ethereum (ETH) traded at $3,398.05 at the time of writing, reflecting a 2.99% gain in the past 24 hours.
However, it has declined by 15.24% over the last seven days, showcasing volatility as it attempts to regain momentum toward the $4,000 mark. With a circulating supply of 120 million ETH, the cryptocurrency holds a market cap of $409.79 billion.
The daily chart shows Ethereum trading near $3,408, below the midline of the Bollinger Bands at $3,722.6. The lower Bollinger Band at $3,231.8 serves as a crucial support level, while the upper band at $4,213.4 represents a resistance zone.
According to crypto analyst Ali (@ali_charts),
“The most significant support level for Ethereum lies between $3,030 and $3,130, with resistance at $3,640 to $3,740.”
A breakout beyond this range may signal the next directional trend for Ethereum.
MACD Signals Bearish Momentum with Possible Weakening
The MACD indicator on the daily timeframe points to ongoing bearish momentum, with the MACD line (-30.6) positioned below the signal line (50.0). Additionally, the histogram remains in negative territory, indicating dominant selling pressure.
Source: TradingView
Despite this, the declining intensity of the red bars suggests that bearish momentum may be losing strength. If the MACD line crosses into positive territory, it could signal the start of a bullish recovery.
However, failure to do so could lead Ethereum to retest its support levels near $3,231 or even $3,030 if selling pressure increases.
On-Chain Metrics Reflect Market Sentiment
On-chain data suggests mixed market sentiment for Ethereum. Approximately 51.58% of Ethereum holders are “in the money,” while 48.04% are “out of the money,” according to data shared by Ali. This balance indicates a cautious market awaiting a decisive price movement.
Source: X
CryptoQuant data reveals that Ethereum’s Estimated Leverage Ratio has reached a peak, suggesting traders are actively taking risks in the derivatives market. Positive funding rates also show that traders are placing long positions, betting on Ethereum’s price increase, although rates remain moderate.
Ethereum’s Silent Surge: Key Metrics Turn Bullish“These factors point to a persistent bullish outlook for Ethereum, as market participants appear ready to maintain, and potentially increase, their exposure to the asset.” – By @EgyHashX Link https://t.co/biIhFoyzBd pic.twitter.com/3kfghQ7EDX
— CryptoQuant.com (@cryptoquant_com) December 23, 2024
The Korea Premium Index, which tracks demand for Ethereum on South Korean exchanges, shows a positive premium. This indicates strong local demand for ETH, which could influence global sentiment. According to CryptoQuant, this demand might contribute to optimism in the broader market.
With key metrics and technical levels aligning, Ethereum’s price movement in the coming days will depend on whether it breaks above resistance near $3,740 or falls below its critical support near $3,030. Traders continue to monitor these zones closely for signs of a decisive trend.
FAQs:
What is Ethereum’s current price and market cap?
Ethereum is trading at $3,398.05 with a market cap of $409.79 billion.
What are Ethereum’s key support and resistance levels?
Support is between $3,030-$3,130, while resistance is at $3,640-$3,740.
What do on-chain metrics indicate for Ethereum?
Mixed sentiment, with 51.58% of holders in profit and high leverage in the derivatives market.
The post Ethereum (ETH) Analysis: Will It Break $3,740 Resistance or Test $3,030 Support? appeared first on Coinfomania.
