Since Ethereum (ETH) price fell below $4,000 on December 17, it has struggled to regain that level, prompting speculation that ETH may not return to that area before the end of 2024.
However, the 5% price increase over the past 24 hours suggests that market sentiment may be shifting. For Ethereum to retest the $4,000 mark, several key factors must be met. Here’s what needs to happen.
Ethereum holders are ready to break through the barrier.
According to the In/Out of Money Around Price (IOMAP), Ethereum price has strong support at $3,352. Currently, 3.34 million Ethereum addresses hold 3.18 million tokens and are in profit.
IOMAP classifies addresses based on unrealized profits, losses, or break-even points. The larger the number of addresses or transaction volume within the accumulation range, the stronger the support or resistance. Therefore, higher out-of-the-money volume indicates greater resistance, while higher in-the-money volume indicates stronger support.
As shown, the main resistance level for Ethereum price breakthrough is at $3,508. Here, 3.9 million Ethereum addresses purchased 1.62 million ETH. Thus, if buying pressure increases, the value of the cryptocurrency may break through this barrier and approach $4,000.
In and out of Ethereum prices.
Another indicator supporting a bullish bias is the 'token holding time.' As the name suggests, 'token holding time' measures the time that a cryptocurrency is held without being sold or traded.
The longer the holding time, the longer the holders have not sold. Conversely, shorter holding times indicate that investors are selling.
According to data from IntoTheBlock, Ethereum's holding time has increased by 332% in the past seven days. If this trend continues, the bullish argument for the aforementioned Ethereum may be validated.
Ethereum token holding time.
ETH Price Prediction: Will prices be higher soon?
From a technical perspective, ETH has broken through 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 could drive prices higher. Therefore, for ETH, the value of the cryptocurrency could rise to $4,109. If bulls keep the price above $4,000, the value may rise to $4,500.
Ethereum Daily Analysis.
However, if the bears take control, the situation may be different. In this case, the price of Ethereum could drop to $3,111. If selling pressure intensifies, the price may fall below $3,000.